Wifi & Bluetooth required?!

I have a cellular, Apple Watch SE and since updating my watch to the latest update, it keeps telling me it’s off-line and I look at my phone and my phone tells me that I need Wi-Fi and Bluetooth connected? This makes no sense when I have a cellular watch and even if I didn’t, why would both be required all of a sudden? This was never an issue for my device before the most recent update.