According to the doc: Packing wearable Apps I am using the following code:
dependencies
{
compile \'com.google.android.gms:play-services:5.0.+@aar\'
com
I have two suggestions for you that may help.
1) You mention you're using the wear emulator instead of a real watch device. I have experienced issues with connecting and syncing the emulator. Try resetting the emulator and reconnecting through Android Wear on your phone (aka running adb -d forward tcp:5601 tcp:5601) again.
2) There seems to be some caching of versionCode on the Phone and it uses that to know if it needs to resync and update the app on the watch. Try incrementing your versionCode and see if that helps.
Hope one of those helps.