Apple Watch - Apple Pay Issue w/ Adding Cards

I'm running the latest updates on my series 2 watch 5.0.1 and iPhone 7 IOS 12.0.1. I'm unable to add the credit cards on my phone to my apple watch. They appear in the wallet and when I tap add, the message I get is "Could not set up Apple Pay - An error occurred while setting up Apple Pay". When I try to add the card manually in the watch app I get the same message as soon as I tap Add Card.

When I check my devices in iCloud and tap my apple watch, it says it has my credit cards added on that device but it says "removing" next to them. When I try to force remove them, they disappear but when I navigate back into the device, it still indicates that they are on the device with the "removing" tag next to them.

I've tried restarting the devices, removing and re-adding the cards to my phone, un-pairing and re-pairing the watch to the phone, restoring watch from backup, setting up as a new watch, removing the device from iCloud devices and re-adding, etc. Nothing works.

Note: this problem started after I unpaired and re-paired my watch to my phone because I was having another issue with it not syncing my activity awards right away. After re-pairing the device and restoring from the latest backup, the credit card apply pay issue appeared. It seems I'm not the only one having this problem but I have yet to find a solution that actually works. Anyone have some useful insight to this problem?