Connect doesn't show in the apple health app, thats the issue.
It's in (or should be in) the Health App under Sources:
There has certainly been a change in behaviour since WatchOS3 so perhaps Apple is working out a few more kinks.
Sometimes, even with Apple devices, a reboot changes things. To reboot, press and hold both the home button and power on/off button together until the Apple logo shows, then release and allow to restart.