I think the error speaks for itself...the bank does not allow the card to be used on Google pay/apple pay etc... I have a specific Mastercard that doesn't allow it too. Its all down to the individual banks security policies.
slightly confused as I can use it as contactless on the phone via the app but trying to set up pay on my watch but it's throwing that message up. but yeah I get what you mean with security policies
Same with my Mastercard, i can use it contactless, but not on Google pay. It is what it is. Im going to assume that the card you're trying to add is also a credit card?