Switching the deployment target from watchOS 7.0 to watchOS 8.0 fixed the issue for my watchOS app. I know that might not be a viable solution for everyone.
angisoft
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Exactly, since the app is a standalone watch App, it should not auto-launch at all. But still it does.
I just found an updated documentation page about opting out in a different plist.info file:
https://developer.apple.com/documentation/watchkit/wkapplicationdelegate/3946544-handleremotenowplayingactivity/
I will try this next and see if it helps.