Thank you Ingo2711.
I'm sorry-yet-glad-yet-sorry to hear that you've encountered the same issue. Sorry, naturally, because you, like I, have been disappointed by the reduced functionality, yet glad - as always in these types of tech situations - to find that it is not something that I should have been able to solve by reading documentation or through my own troubleshooting efforts, and yet again sorry that there is no fix or planned fix.
Yeah, I've played with that work around. As you are no doubt aware, the diminished photos face limits us to 24 photos in such a collection, and if choosing to shuffle an album we get perhaps 16 different images per day. My experience with that is that the watch frequently fails to actually display all 16.
My work-around has been to create multiple Photos faces shuffling different albums, with a shortcut that randomly selects a different Photos face every 15 minutes. Far less than satisfactory, kind of annoying, but better than what Apple now offers off the rack.
I don't expect an answer, but why Why WHY does Apple do this stuff? It wasn't broken. It was wonderful. I had created an album of 500 pics where over time I'd carefully cropped each one to fit the display precisely as I wanted. What was wrong with a beautiful watch face that would display a different 1 of 500 photos each time I raised my wrist? Now, even with my work around, the very awful AI crops my photos in truly bizarre ways that ruin the overall effect frequently, and improves it never. And truly I hate that the way the time moves around all over the face, over and behind the images.
Please don't recommend that I fill out Apple feedback! My experience with that is that my time would be more productively spent pounding sand.