I too was having the issue with being unable to dismiss, complete, or abort the setup dialog.  Eventually, that went away.

Now there is a different interesting problem.  When I receive a text message, the notification on my Pixel comes up right away, but the notification on my Moto 360 is delayed.  It will randomly appear 2 or 3 hours later.  Notifications from other apps come up immediately, as they should.  Only Verizon Messages is affected by this delay, and only on the smartwatch, not the Android phone.