It’s not about iPhones or carriers, the only thing that matters is the account (Apple ID). If it is locked to one account, it needs to be removed from said account or it won’t work. This also shows, that your watch is not brand new. It must’ve been used at one point, even if it was just for a short time.
I have a SS watch and I normally use sport loops. For formal events I switch to a fitting SS or leather band