Good news. This looks to be a simulator problem. I updated my watch to watchOS 8 and the app works as expected on real hardware!
docurtis
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Just filed https://feedbackassistant.apple.com/feedback/8986729.
I refactored the SpeedySloth sample app to respond to handleActiveWorkoutRecovery() being called while crashing during an active workout. Let me know if you need anything else. Thanks!
@maxzoech: handleActiveWorkoutRecovery() is working for you on watchOS 7.3? Are you using SwiftUI?
I was using watchOS 7.2. I'm trying now to reproduce on watchOS 7.3 and it still appears that handleActiveWorkoutRecovery isn't being called. Thanks!