Why do you state it's "unclear is Live Photos are animated when used as watch face when it's clearly acknowledged on the official WatchOS 2.0 page (http://www.apple.com/watchos-2/)?
I even posted a screenshot further up in this thread from Apple's watch page (the watch face overview/guide) that even says Live Photos can be used with the photo face. I'm not sure why he said it was unclear as well, it's documented it can in a few places.