8.11 Passcode Reset Loop

I have a Lily 2 running 8.11 that is stuck in a passcode loop.

On the Watch, whenever I swipe up, I get:

The watch is locked. Reset your passcode in Garmin Connect

When I go to Garmin Connect on iPhone (which is connected to the Lily 2) and System / Passcode, I get:

Update Setting on Device

This setting is only available on your Lily 2

I can restart the watch (which makes no difference), but I can't reset it from Garmin Connect or anything.  I know what the passcode is/was but I have no opportunity to enter it.

What should I do?