I think you are talking at cross purposes.
@NME42 is saying that the latest version of WOD is better than the previous version because it includes every GPS point reported by watchOS to the app, whereas the previous version skipped a few to save space. This is correct.
@Maryn is saying that the stock app produces a smoother route than WOD. This is also correct because Apple smooth the route after the workout. As
@NME42 says I prefer to leave that to the receiving systems if they want.
I think that how the trail looks is not too important in terms of distance and pace. By default WOD uses Apple's calibrated distances, which use the pedometer. Even if you configure the app to use the GPS it will then smooth the trail to get rid of GPS inaccuracies.
Also when you upload a workout to other systems they either respect the distances in the file, or they recalculate them from the GPS positions. In my experience this recalculation usually has to do some smoothing/processing as well. The systems do not know if the trail they receive is smoothed already or not so they do their own processing. Maybe some even do snapping to roads or trails.
The upshot is that whether or not WOD smoothes the GPS trail probably makes little or no difference to the distance and pace displayed by the app or by external systems.
Having said that I haven't used Runalyze, so I do not know if they process the route? But generally if you send a smoothed route or an unsmoothed route to most systems then they produce very close results in terms of distance and pace.
And even if they do differ then I would be more likely to believe the values for the unsmoothed route because external systems are more likely to be geared towards processing raw data than the results of Apple's ever evolving smoothing algorithm.
This is all speculation but that is my reasoning. As I say in the future I may add the option to load the smoothed route from Apple's Health system, and use that for display and/or for exporting.