This watch face will work on all Wear OS devices, but only devices with the Snapdragon 3100 processor support the enhanced ambient features such as a moving second hand. Also, watches still running Android Wear are not supported.
After setting the watch face, long press it. You should see a settings icon beneath the watch face preview. Clicking this will bring up settings for the watch face.
Essential 3100 needs to use a new type of watch face to be compatible with these watches. However, there is no documentation to explain how to use this method, so I have no idea why this could happen or if it is even related to this type of watch face. I personally have only experienced this issue on the Fossil Sport. I suspect this is because it has less memory which is the primary difference in it and other watches. To reduce memory, you may consider switching the second hand to ticking and turning of complications in ambient mode.