Your archive has an issue. I cannot extract the "after" video.
I have revisited the pack and stand by my original assessment. The script and images are correct based on how I wrote it. The face of the compass with the N/S/E/W does not ever move, but the needle moves only. The one tip of the needle has red, which is a marker for what direction the player is traveling. Here is my test from when it was created.
This is a simple map. The player starts facing North, a book stand is in the North, an Anubis Ark in the East, a book stand with book in South, and a Cat statue in West.
Player enters and is facing North...
Player turns to East...
Player turns to South...
Player turns to West...
Player returning to face North...
And a video to show it working as it was written and working...
As I said before, the pack was created where only the needle rotates and the face remains stationary. If the player is facing North and turns towards the East, the red tip rotates towards East while the face remains stationary. If the player faces South and turns to the East, the needle red tip rotates from South to East. This pack was tested extensively before it was ever released in both v1.17 (my source of v1.17 since it uses variable system which is in my source but not the default v1.17) and v1.18. I did not test in v1.19 or v1.20- since the script was simple and commands had not changed.
I do have an extension to the pack where the needle remains stationary and the face rotates according to the direction the player travels. If the player travels North and changes direction to the West, the needle will remain in the up/down position with the red tip pointing up to indicate player direction, and the face will rotate clockwise. If the player is traveling North and changes direction to the East, the needle remains stationary and the face will rotate counter-clockwise. However, I have not released it as of yet.
There's no problem that can't be solved without applying a little scripting.