As many other questions here on SO, I encounter a similar error message. Unlike other questions, this is regarding a hardware debugged device.
My gradle wear-build file
My solution was to upgrade Android Wear Smart Watch on my emulator
Android Wear Smart Watch
First, I noticed my Google Play services on the emulator was out of date.
Go to play store, and click the top menu:
Find Android Wear Smart Watch, and update it.
After that, my Google play services is up-to-date.