Can't install watch faces or Lollipop update

I just got my GWR yesterday and I can't install any watch faces from the google play store nor will it update (came out of the box with 4.4). I had a Gear Live (Samsung's Android Wear watch) that received the OTA 5.1.1 update and I was able to install watch faces. I tested the GWR on 3 different devices and factory resetted it at least 10 times. Same problem each time. All the notification functions work perfectly. I'm able to install Web Browser and Wear Mini Launcher.

I noticed the Android Wear app was updated on August 18. Did Google remove functionality? After I download watch faces from the Google Play store, I don't see an option to change the watch face in the Android Wear app. Are others having the same problem? I attached a screen shot.

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