Well, it looks like Beta 4 doesn't fix the running apps on device - I still just get the spinner on launch which either never completes, or eventually crashes back to springboard.
BUT
It appears that this is only with WatchOS 2 Apps written in Swift! If you have an Objective-C app then it deploys and runs!.
I've just done a small test with totally clean projects - one swift and one Obj-C - nothing fancy, just setting a label text on start. The Obj-C one launches fine but the Swift one never launches.
Any one else confirm the same behaviour?