I am facing similar issue.
My watch recording is getting published to my iPhone, but there is no acknowledgement to watch back.
func session(_ session: WCSession, didFinish fileTransfer: WCSessionFileTransfer, error: Error?) is not getting called.
using progress observer of WCSessionFileTransfer, it is fixed.
But no idea whether there is any fix from apple in iOS 17.6 and watch os 10.6.