I have the same issue with red hand spinning indefinitely. All my location services are turned on. I am outdoors but still spinning.
edit: I also have the compass complication and THAT is actually working. Can see the compass needle moving there; just not on the actual compass watch app itself. Weird!
Update #2: okay, I finally managed to get it to work and I have a rough idea what the issue is. It’s the dialog / pop up that asks for permission to use location services but fails to pop up. It’s only after I toggled a couple of radios off and on (turned BT and wifi off on the phone) then voila! the permissions dialog surfaced and once I tapped allow, the compass worked. Hope this helps.
THAT DID IT,, what a crazy deep packed setting that I’m not sure why it was off.. frankly, i think I turned this off on the PHONE about seven years ago as it was one of the things that can drain battery ON THE PHONE… laws knows why the setting ON THE PHONE would be required for the Watch compass to work.
What I REALLY don’t understand is WHY/HOW the WATCH GPS capability should be dependent on a SETTING that is only available on the PHONE. I mean what if one left the phone in the car on a hike, and figured they could use trackback or GPS tracking on the watch and yet, if they hadn’t changed ONE setting on the PHONE prior to that, well then they are literally screwed.