Below is the wiring for the original 3 way switch. Note how the neutral goes directly from the box to the light and bypasses the switch. In your switchbox, the red wire is the traveler and one of the other black wires is also a traveler. The load (or line) was the wire that was connected to the black screw on your 3-way switch. The switch won't work if the black traveler is connected to the black screw.
You installed a 2-way switch, which is intended for only one switch controlling the light. The reason you have to connect the white wire to the ground is to get some power going through the switch to keep the motion sensing active, even when the switch is off. That's fine. It's designed that way. You're not going to cause a fire.
You capped the red wire, which means when the other switch sends power through the red wire the light will be off. When you flip it to the other position and the power goes through the black wire the light will be on because the motion switch senses you and closes the switch. If you leave the 3 way switch in that position all the time then the motion switch should work as you want. However, if the switch is set in the other position (light is off), I can't see how the motion switch can turn the light on. No way to complete the circuit.
Ideally you would install a 3 way motion switch that does not require a neutral. I believe the one you found on Amazon requires a neutral.
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