Apple Breaks watchOS Updates On Older Apple Watch Models [Update: Fixed]
With today's watchOS 11.3 update, Apple accidentally broke watchOS updates for some older Apple Watch models, according to information circulating on social networks.

For Apple Watch models that are unable to be updated to watchOS 11, such as the Apple Watch Series 4 and Series 5, there is an unintended bug that prevents some of them from installing the latest version of watchOS 10, watchOS 10.6.1.
An Apple Watch that was not running watchOS 10.6.1 prior to the release of watchOS 11.3 and iOS 18.3 is now unable to have the watchOS 10.6.1 update installed. So an Apple Watch SE 1, Series 4, or Series 5 owner running an older version of watchOS cannot install watchOS 10.6.1 at the current time.
Further, some Apple Watch models running earlier versions of watchOS 10 cannot be paired to an iPhone.
This issue only applies to Apple Watch models that are limited to watchOS 10, and it is further only applicable to those not already running watchOS 10.6.1, an update that came out last August. Apple will likely fix this issue in the near future.
(Thanks, lunotech11!)
Update: Apple appears to have addressed this issue.
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