It’s the same for me now, worked when I enabled it first I think on Tue but not anymore, and when u turn it on like you describe, it works fine in the phone but doesn’t work at all on watch…Unfortunately, even for My Teams, the Live Activity doesn’t launch automatically for me - I have to go in and tap the little clock icon in upper right of the game. Is there a setting I’m missing?
If I find the time, I’ll contact Apple to see what I might be missing