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Watched folders use the model you picked for files. The Files page has two model choices: Model at the top (for files you add) and Batch model for the watched folders, which defaulted to your dictation model. With FLM (NPU) picked at the top, the watched folders kept transcribing with the dictation model on the graphics card. Batch model's default now follows the model picked for files (and the list says which one); with none picked it is still your dictation model, and a batch model you pick yourself still wins.
The watched folders' model is no longer unloaded between the pieces of a file you are transcribing on the Files page.