I've had a similar problem in the past but it didn't seem related to a software update. I just restarted the phone and reconnected the earbuds and it worked fine after. You can also try deleting the earbuds, or whatever your trying to control the volume of, from the watch. Then try adding them again to see if it fixes the problem. Outside of that stuff not working I would try and do a reset of the watch. Hope this helps. Good luck.
