Watch Face Unavailable This Watch is not available with your current version of watchOS

iPhone software: iOS 14.5.1

Watch software: 7.4.1 (18T201)

Watch model: MQL12B/A (Series 3)

All software is fully up to date but whenever a 3rd party watch face is downloaded e.g. from applewatchfaces.io or Facer the Apple Watch app errors with "Watch Face Unavailable. This watch face is not available with your current version of watchOS."

This happens for all watch faces simple and complex including watch faces labelled as suitable for Apple watch series 1+ (all watches).

Anyone else experienced this or know how to fix it?