To answer my own question, this issue was resolved by going to the Plist for the Watch Extension (important that it is the extension), and adding the item "App communicates using CoreBluetooth" to Required background modes.
To answer my own question, this issue was resolved by going to the Plist for the Watch Extension (important that it is the extension), and adding the item "App communicates using CoreBluetooth" to Required background modes.