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
Google Play Services is not going to be bundled with your app so what you are seeing is that your watch is using version 8.1 of the Play Services (which is installed on your watch) and you compiled your app with a higher version and that is not going to work; the version installed on your watch should always be bigger than or equal to the version you compiled your app with (same is true for your phone)
Change this statement
compile 'com.google.android.gms:play-services-wearable:8.3.0'
to
compile 'com.google.android.gms:play-services-wearable:7.8.99'
Google on your handset device "Download Google play services" Will open your app store and then click on update. That should do it.
My solution was to upgrade Android Wear Smart Watch
on my emulator
First, I noticed my Google Play services on the emulator was out of date.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.