Android Wear odd behavior after factory reset
Ok so after a few days of trying various things and communicating with Motorola support I managed to resolve all the problems. They suggested I do another factory reset on my watch by un-pairing it with my phone, which then left me unable to connect to my watch again using the Android Wear app on my phone.
I then found that even though I unpaired my watch, it was still shown under my bluetooth devices. I removed it and cleared the app data for the Android Wear, Moto Connect and Moto Body apps, and then when I tried pairing, it was successful with all the above issues resolved.