Yes, I'm having the same problem. Rebooted phone and watch multiple times. When I click the update button on my watch, it goes all the way through the update install process and then when it completes, it returns back to the "update" prompt screen and asks me to update the watch. Annoying!
I would try this: Back up the watch and perform a factory reset. Just a heads up, by doing this will delete any previous devices that have been paired to that device, you will have to re-add each device again. Once the watch is reset back to its factory settings, try updating the Bixby update again.
I'm facing the same issue. Common Samsung fix it.
I can't do simple things like adding a note to calendar with ease. I can't sit around typing stuff on the watch.
If anyone knows any workaround pls tell