Ok. The 2nd update for 10.1 watch still not keeping selected location in settings. ONLY shows relevant "if" location turned on BUT cannot keep that on, as I live on a VPN for work and it will just show wrong location. Before iOS 10, windy would Keep whatever Selected location in the settings and was a joy and life was beautiful. ;-)
So bug seems to be to tell windy to override and keep selected location/place Selected in settings When location services turned off :-)