Cannot software update Watch 3

What I posted above is not accurate, sorry. You can pair an Apple Watch Series with an iPhone running iOS 16.0.3. Please disregard what I posted.

The issue with pairing an Apple Watch Series 3 is it is low on memory. I'd recommend scheduling an appointment at your Apple Store Genius Bar and let Apple update the watch, then pair it with your iPhone.

Sorry for confusing you with the previous post.

An Apple Watch Series 3 is not compatible with an iPhone running iOS 16. You won't be able to use the watch with your iPhone because it can't be updated past WatchOS 8.7.1. And an iPhone running iOS 16 or higher, requires a watch which can run WathcOS 9. Time to purchase a new watch.

This is not entirely a storage issue. I have a cellular S3, so 16gb. I've freshly wiped it. Watch is currently using 5 out of 16gb. Please don't try to tell me that 11gb free is not enough to apply the 600mb 8.7.1 patch. This is a broken patch from Apple which is being flagged as mandatory on iOS 16. This is a problem.