ok let me repeat: the screenshot you’re showing are NOT the Watchlist app. You’re using the notifications app so it’s normal that the mail you get is not using the watchlist template mail format!
So just use the Watchlist app and NOT the notifications one and it’ll work fine
Why?
I have no idea but it shouldn’t be the case, that looks like a mistake (@gdelhumeau ?) Anyway they’re 2 separate apps. And both can notify users by email.
Check your watchlist entries in your user profile and make sure you have configured the schedule.
More generally you just need to follow the watchlist documentation:
http://extensions.xwiki.org/xwiki/bin/view/Extension/Watchlist%20Application
Hope it helps