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935 Software Update Failed - Insufficient Storage

I'm trying to upgrade my Garmin 935 from 4.10 to the latest firmware using the Garmin connect Android App. The App reports 'Forerunner 935 Software update failed. Not enough storage space available'. Selecting the error takes you to an old article discussing how to remove activities by attaching to a PC/Mac. I've removed the activities from the watch (after syncing) and ensured the Garmin/Activity folder is empty (by attaching to my PC). The watch is a few weeks old, doesn't have any custom IQ apps or fields, it updated the firmware fine out of the box, however now it refuses to do so. I've restarted the watch, rebooted the phone, to no avail.

Has anyone seen this problem? There appears to be a flood of people complaining about the latest android garmin connect app which rolled out early Sept, mostly about certain devices no longer syncing, although there are reports from users of the 935 having issues too. Is this due to the connect mobile app?