In its current state, selecting playlists is pure guesswork as there is no text, only images in [Your playlists]. We are in 2021, not implementing playlist names in the playlist browser surely must have been a mistake that for some reason has gone unnoticed by Spotify for all this time, not to mention the entire interface that isn't at all optimized for the Tizen OS?
Scrolling through your complete collection of playlists in one long compiled list from all playlist folders is not intuitive. When browsing your library from a wearable, you're likely looking for something spesific, like a certain playlist from your workout folder, or just your favorite playlist. Sorting options in settings (on the phone app in a separate settings category (i.e. [Manage device]) for the wearable and/or in wearable app settings), i.e. "Show downloaded playlists first on/off", "Only show [selected playlists]/[playlists in selected folder(s)]" and a changed layout/interface could quickly fix this issue (f.ex. by ditching the playlist thumbnail list and rather utilize the whole screen, for example with inspiration from the Galaxy Watch bezel ui + widget interface for selecting/using apps where selected playlists/albums can each be a separate "widget", while the bezel let's you easily navigate through playlists/playlist folders).