I used the app on my phone and set the app view to List, then selected the dock to show favorites. I even set the favorites down to one app. It will only show the entire list in alphabetical order.
Note: I can set it to grid view and set the arrangement.
Note 2: WatchOS 7.4, iOS 14.5
Yes, I have rebooted both several times.
Apple Watch Series 5, watchOS 7
Hello and welcome to Apple Support Communities conway48,
We see that you're having an issue with your Apple Watch showing your favorites as you previously viewed them. We can understand wanting to be able to access your favorites, and we'd be happy to help.
You've already done some good troubleshooting steps to help resolve this issue that you've been experiencing. Next, we'd like to have you unpair your Apple Watch from your iPhone and pair it back again. This can help with refreshing your settings.
Unpair and erase your Apple Watch
Let us know how this goes.
Have a great day!
Hello and welcome to Apple Support Communities conway48,
We see that you're having an issue with your Apple Watch showing your favorites as you previously viewed them. We can understand wanting to be able to access your favorites, and we'd be happy to help.
You've already done some good troubleshooting steps to help resolve this issue that you've been experiencing. Next, we'd like to have you unpair your Apple Watch from your iPhone and pair it back again. This can help with refreshing your settings.
Unpair and erase your Apple Watch
Let us know how this goes.
Have a great day!
Apple Watch 5 won’t show favorites
