Maybe this won't help, but have you tried doing a hard reset on the watch yet (hold the left button for 10 seconds)? That has worked for me in the past. If it doesn't I'd wait for someone with more experience troubleshooting the watch than I have to respond.
I mainly wanted to respond to warn you not to do a factory reset. I was having the same issue you're having with the notifications, and mine wasn't syncing either. I tried the hard reset, and a full shutdown, and when those failed, the factory reset. The watch is now stuck on the introduction screen and won't pair to my phone. Just a heads up.
