It may not be a bug but it could be feedback, Basso thinks that's how it should be.
In A2 the player could have both his watch and compass on screen at the same time... so it's not a realism issue unless your character was running around with his wrist and compass in his face, haha.
I agree with Subscyed however. I prefer to use these tools only momentarilly for time or bearing (I also like how the compass now has sway when it's brought up or moved, yay!).