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Getting your QR to work
The Apple Watch's shiny display is nice to touch but reflects as good as a mirror. Make sure that, while scanning, you don't see any reflections of lights sources in the Watch's display
The iPhone camera adapts to lighting conditions as good as it can. However, this can make the white parts of the code overlap the black ones. Please move to a brighter room and, if possible, put the watch on a bright surface such as a piece of paper so the camera doesn't get confused.
Many users have reported that scanning worked as soon as they put their watch's brightness to the lowest possible setting.
I always wondered how people were able to destroy their Watch displays - 10 days ago, it happened to me, too. Scratches on the screen can make it significantly harder for QR code scanners to read the code.
Dirty camera lenses
Camera lenses with dust/grease on it can result into blurry pictures. Try to wipe your iPhone camera to clean things up a little.