The watered down version drops the words "occupying power" in relation to Israel, in an attempt to soften the resolution’s tone and thus make it easier for it to be approved.I would like to see the full text of the draft resolution before I comment in any detail. But from what this article says, it looks as though the many criticisms of the last resolution are having some effect. Watch this space.
In addition, the new version uses the term Western Wall without quotation marks as the original version did.
At the same time, the resolution still includes a denial of the Jewish connection to the Temple Mount. The Temple Mount is mentioned in the resolution as “Al-Aqsa Haram Al-Sharif” and described as place of Muslim worship. The words “Temple Mount” and the fact that the Temple Mount is a holy place for Jews are not mentioned.
The resolution further argues that Israel’s archaeological work in the area is "intentional destruction" and calls on Israel to respect the status quo. The document ignores the Palestinian’s archaeological excavations underneath the Temple Mount.
Background on the previous UNESCO resolution etc. is here and links.