Brand new Apple watch SE (2nd gen) cannot update to 11.5 while starting for first time

Hi, brand new watch SE (2nd gen) can not finish the update process when starting it for first time. The update is stuck usually showing 2 hours remaining.

I have tried restarting the devices (both phone and watch)

The watch shows only the logo (ALuminium case, 44mm, designed by... etc.) and can not be used before the update is finished.

Any ideas how to finish the update and start using it.

Thanks!