Yeah i am having this same issue. I've had my watch for 5 days now and did all the updates. Funny though that bixby worked even after the updateuntil yesterday but stopped working this morning.
I am hoping Someone at samsung see's this.
I had the same issue, you just have to download Bixby provisioning app in the galaxy store along with another Bixby app, that solved the issues for me rather than resetting the watch and using the older version