The step count on my watch face had stopped showing so unpaired and reset and it set the watch up again and its now working again. As always had problems getting fit to install on the watch but just uninstalled from phone and then installed again and all back to normal.
Unfortunately i think the watch is becoming obsolete its a shame as it is still a well spec'd watch. Luckily with various offers i didn't pay a great deal for it i think this will be my only Android Wear watch as this has proved what i thought and why i won't spend a huge amount on a smartwatch. I'm not going to spend £150+ on a watch that becomes obsolete within 2 years has a battery that will probably over the next couple of months die (noticed it doesn't last as long already) and is non replaceable, think i will just save the money start a watch fund and invest in a decent old school watch (a breitling is what i have my eye on) that will at least hold some value in the future and last.
Same here really, my smart watch 3 has stopped counting steps after a recent wear OS update, a pity as it suits my needs perfectly but I doubt I will buy another android watch. I might just buy a Fitbit or similar.
I had the same issue and turned out to be a combination of the gyro being stuck (compiled and installed an app from github.com/drejkim/AndroidWearMotionSensors to check the gyro and accel) and the OS update screwing with older watch faces. I gave the watch a firm tap on the face to get the gryo working and switched the watch face to the Google Fit Today face and now it's counting steps again. Hope that night help someone!