Hi,
I dont know if it’s the same but I got same problem too.
In my opinion Google Play has a little bit right - if reality is what I think.
I always made icons looks like:
Then I’ve tried to add my logo to icon:
and I recieved:
“Your app icon contains texts or graphics that are not part of the app experience. ”
and they are right - this icon dosn’t represent how my watch face looks like - because Ive add just logo.
So I’ve tried this one - like many devs:
So here we got part of watch with watch face - but logo placment suggests that is NOT part of watch face - because its placed over watch itself and watch face.
I changed all my icons in that way, and never get warning or any problems. Hope that I never get 
Anyway, be sure that your screenshot of watch face didnt has any additional graphics that suggests customers they are part of watch face - light glares, fake glass etc…
And yes, Im really tired of all problems with Google Play… We develop small apps, but in large quantities.
Cheers!