A couple things I found of interest
If you do an update to 1.8.1 it installs in the Galaxy Watch Designer folder but if you do a fresh download and install it it create a new Galaxy Watch Studio folder. That may be why you couldn’t delete the old folder I’ll check on that.
You have a very old gwd project and I think that is the reason each version changed the project file from 1.3 - 1.6 If there is no way to recreate the project from scratch then download 1.5.1 and update the project to that then try to do this with GWS 2.0 You can dowload old versions from HERE
Samsung Developer Program