Sorry to hear about your nan, my condolences to you and yours.
As others have noted, it seems this is a feature, albeit a rather annoying one. I don't know why the blurred area needs to be so large, even on my 45mm S8 it's taking up a large portion of the screen. Fortunately for me, I don't use many apps on my watch that include that title area and feature a scrollable list that causes the blur. It would be nice if the blurred area would shrink dynamically to only include the space that actually has text (time or app name) instead of the whole top of the screen. That would also make the effect of "reduce transparency" a lot less jarring, as it would block a lot less content.