Watch Face not found

I'm still learning the ropes with Android Studio, I hope this isn't a totally stupid question.

I downloaded the code to look at and play around with the Watch Face Format samples. I loaded them up in Android Studio and it built fine, but I can't add a Wear OS Watch Face configuration. When I select SimpleDigital.watchface as module, it says "Watch Face not found"

How / Where do I specify an .xml or .kt to act as a watch face?

In another project I started from scratch, I have this in my manifest:

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but same issue with "Watch Face not found"

Start by reproducing the Watch Face configuration flow with SimpleDigital.watchface in Android Studio and inspect the manifest service, intent filter, and metadata shown in the report. Done means the sample's watch face is detected and selectable, or the issue is clarified with the required configuration.

Written by the indexing model from the issue text.