Updated today on my Android phone then couldn’t connect to my Pebble Time watch. Enabled Airplane Mode for about 10 seconds but didn’t connect. Rebooted watch and phone. Continuously displays Connecting (BT Classic). Never displays Negotiating. I sent a bug report using the Pebble app on my phone. I also clicked Disconnect then Connect in the Devices tab of the phone app.
Were you previous using the BT classic mode before updating the app?
We are migrating all users of "old watches to use BT classic by default with this release (which should fix a lot of reliability issues with OG/Time watches) - it should have prompted you to pair over BT classic if you weren’t already using that mode.
If that didn’t happen and you can’t connect, then please unpair on both watch and phone (in Android bluetooth settings, and in the watch bluetooth menu, and try to reconnect).
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That worked, thanks! 
Will there be a way to use LE? Or is that just not supported anymore?
Yes, but kinda hidden - behind a debug setting (i.e. we’re not going to stop you, but it’s not the “supported” way). Of course if they get a new BLE stack then we’ll revisit that.