Been trying for a few days to get my Moto 360 to update... Here's the latests steps.
1. Restart Phone
2. Reset Moto 360
3. Clear Data and Cache for Android Wear App.
4. Turn Bluetooth Off
5. Uninstall the Android Wear App
6. Turn Bluetooth On
7. Reinstall Android Wear App
8. Turn home Wifi router off
9. Change Android Language to Slovakien
10. Try Use Google Translate to figure out how to change Language back to English
11. Turn home Wifi router on
12. Try again to use Google Translate to figure out how to change Language back to English
13. Spend 30 minutes reading about Slovakian history on Wikipedia
14. Remember that you have a Moto 360
15. Setup Moto 360 as new watch in Android wear
16. Get a cup of coffee
17. Check for Update
18. See "System is up to date"
19. Confirm that OS is still 5.0.2
21. Check for Update
22. See "System is up to date"
23. Confirm that OS is still 5.0.2
24. Check for Update
25. See "System is up to date"
26. Confirm that OS is still 5.0.2
27. Check for Update
28. See "System is up to date"
29. Confirm that OS is still 5.0.2
30. Check Battery Level
31. Confirm battery level is now 41%
32. Roll Eyes...
33. Open Desk Drawer
34. Place Moto 360 in Drawer
35. Close Drawer
---- Problem Solved ----