D2 Air stuck in update loop...watch is unuseable

Brand new D2 Air, cost over $500, and it is unuseable. It asks me to install an update that will take 1 minute, and then it goes into a blue triangle that simply never goes away. If I leave it charging, it will continue for at least 24 hours (the longest I've left it). If I take it off the charger, it will continue with the blue triangle until the battery dies. 

I have tried this with it connected to a computer and also via wifi with Connect Express (iPhone)...no difference.

Can somebody please tell me what I'm doing wrong? 

Thank you