Cannot delete old Apple Watch 6 from my account

I got a new watch and want to trade the old one in (I've already set that up with Apple). I have erased the watch contents and shut off "Find My" - and when I turn the watch on, my phone asks to pair it, and the watch says to move closer to the iPhone. I thought that was enough to get it out of my account. But my when I log into my icloud account, it shows "unable to be removed from account" - It does NOT show up in Find My and it does not show up in the Apple Watch app on my phone.

Can I send this back to Apple now, or do I have to do something else with the watch to get it OUT of my account? Thank you!