My 2nd gen 360 got the update a couple of days ago. It seems to have broken the main function of my watch: notifications. First I got zero notifications after the update. Reset the watch, re-paired with my phone, and for the first hour or so, I was getting notifications. Now we're back to no notifications. Wear app lists it as Connected, and Smart Lock is working as if it's connected. I've followed the fix suggestions posted online with no luck.
Wish I could roll it back so that my watch actually functions properly.
Edit: Now I am getting text and GMail notifications, but nothing from Outlook, even though those appear on my phone. I don't have any blocked apps in Wear, so not sure why it's picking and choosing -- if a notification appears on my phone, I expect it to also appear on my watch. Grr.