As per your pic, that is for showing calls on the watch, incoming & missed etc. The latest version of the app & tizen does this automatically.
As I understand, you can see the caller id on your watch & can cut the call but cannot pick the call. See the picture below. I get the same thing except for the green icon to pick the call.
I am running latest version of all the apps & my watch is the bluetooth version running on Tizen 2.3.2.3 with software version R760XXU2BQC5. I am located in India & awaiting the new Tizen 3.0 update.
If you can, I suggest using stock rom for your phone & then reset the watch & do not restore the backup. As I've read, that should work.