That is a new "feature" of watchOS 27.
In Settings, you can select App View and from there select List View. Then, when you tap the crown button, what is shown are your most frequently recently used apps (which you can use to run one of them quickly) plus an icon that looks like a list of things. If you click on the icon that looks like a list of things, you get the old list view.
If you don't have List View specified in your Settings, then clicking the crown button brings up a screen showing the apps. You can turn the Digital Crown to scroll all the way to the bottom of the screen where you can tap List View.
I initially wanted the old (OS 26) list view back after I upgraded to OS 27, but now I like what is done when you specify List View in your Settings. Having the frequently/recently used apps there to easily click again is convenient, and the old list view is also easy to get to (one more tap is required versus before).