You can set up a one to one correspondence between all the points on a line (or in a square or in a cube) and all the clock faces a working clock can produce but you cannot do the same with all possible clock faces.

The set of all clock faces a working clock can produce - call this the set of all valid clock faces - has the same topology (and cardinality) as a circle. The set of all possible clock faces has the same topology (and cardinality) as a 2-dimensional torus.

However, the cardinality of a 2-dimensional torus is the same as the cardinality of a square, which is the same as the cardinality of a line (as you yourself recognize), which is the same as the cardinality of a circle.

Therefore the set of all valid clock faces has the same cardinality as the set of all possible clock faces.

the faces a working clock can produce is just ONE way all real numbers can be paired together, the power set is ALL the ways 2 real numbers can be paired together, it has a larger cardinality than the points on a line and is the number of all possible clock faces.

A power set indeed has a larger cardinality than the set it is a power set of. However, the set of all possible clock faces is not the power set of the set of all valid clock faces.