After the update, did you enable the additional notifications in the gear manager? if you click on notifications, at the bottom there is a 'more notifications' toggle, which then allows you to have any app installed (that would normall have notifications in your task bar) send their notifications to the gear.
This worked for me. I can read the messages from hangouts without any issue at all. I also have facebook notifications and such shown on the watch as well.
My trek through cellphone history:
Nokia 252 - Green
Mitsubishi Trium Astral - White
Samsung Omnia II
HTC Desire Z
Samsung Galaxy Note 1 - 16GB - White
Samsung Galaxy Note 3 - 32GB - Black **Surprisingly, under warranty, they even fixed the physical damage I caused. Go figure...**