The Android Wear 2.0 developer preview 3 release brings a lot of new features and changes to Android Wear OS. The major change being introduction of Play Store to Wear OS, which invites for updated Play services and other frameworks needed to install apps from Play Store.

If you’re trying to setup a Watch on Android wear 2.0, you might get stuck on a screen that says “Continue setup on phone”. At this point, if you don’t have Google Play Services framework with Android Wear support (version 9.8.41 and above) and the newer Android Wear app (version 2.0 and above) on your Android phone, then your watch will probably just get stuck on Continue setup on phone.

However, if you’ve the updated Android wear app and Google Play Services installed on your phone, you can continue setup of Google accounts for Watch from the Android Wear app on your phone.

How to Fix “Continue setup on phone” on Android Wear Watch

  1. Go to Settings » Apps » All apps.
  2. Select Android Wear app and check version number. It must be 2.0 or above.
    └ If not, download & install the latest version of Android Wear app from here.
  3. Go back to app list. Select Google Play services app and check version number. It must be 9.8.41 or above.
    └ If not, download the latest Google Play services APK from here.
  4. Restart watch and your Android phone.
    └ Do this even if you had the updated Android wear and Play services apps.
  5. Continue Watch setup again.

After performing the steps above, if your Watch setup is getting stuck at copying Google accounts (on Wear app), then reboot both Phone and Watch and try again.