Hi macmatt007,
To clarify, you're seeing a gray dot but it previously looked different, correct? While we're only seeing the gray dot in your photo, from your description, it could be one of these: Status icons and symbols on Apple Watch - Apple Support
"

You're navigating with a third-party app.
On watchOS 10, the icon for the third-party app used for navigation will appear. If the icon still appears after you end your navigation, restart your watch.

Backtrack is running.
The Compass app icon appears when you are using Backtrack."
Best wishes.