Apple Watch Passcode

Have you folks got any issue with the Apple Watch Passcode setting?  In the My Watch app, when I tried to turn Passcode on, I was told to set the new passcode on my watch.  I then entered a code of 8 or greater digits with non consecutive numbers (as required) and pressed OK.  The number pad remained there.  So I entered the code again and pressed OK.  The number pad still remained there.  The only I option I had was to cancel.

Then I tried to power off the watch, and powered on again.  I went back to the My Watch app on my phone and found that a passcode was now set.  But the all other passcode related settings on My Watch app and the watch were in grey, i.e. I couldn't change any of the settings.

The situation is exactly the same as this guy:

Have any ching experienced the same?

If it's merely a software bug, I'm good, as long as it's not a hardware bug.  Other things seem okay.