The Sony SmartWatch 2 interface app on Android received an update to version 1.4.51 on 22 Apr 2014, and it seems to have broken Low-Power Mode (LPM) for third-party apps. At the least, I have an app which was using LPM fine before the update, and it no longer works (the watch returns to its default watchface when the backlight goes off). My code hasn't changed, and there's nothing in logcat to indicate a problem.
Further confirming that it's not my app, I've noticed that the same problem is affecting Endomondo: their control used LPM before the update, and it no longer works.
Sony folks: is this a known issue? Or worse, has LPM been discontinued as of this update?
Other SW2 devs: have you seen this behavior in your own apps? Found a workaround, by any chance?
Low Power Mode is still supported and nothing should have broken. Only difference is that now it is possible to support "active" low power mode which means that the user can interact with the screen while the app is in low power mode (screen presses won't automatically wake up the screen).
Possible it's an issue with your watch where the SW is in a bad state somehow. Try restarting your watch and phone and uninstalling/reinstalling the host app and SmartConnect.