The Clock Shop replaced the Arts and Crafts Shop around 1963

From WED Disneyland Dictionary 1968
Offers clocks. music boxes, ornate carvings from all parts of the world. A glass artist, here, creates unusual items for purchase.

From Steve Birnbaum brings you the best of Disneyland 1982:
This tiny, low-ceilinged, stone-floored shop in Sleeping Beauty Castle stocks jewelry made by the ancient craft known as Damascene, which involves etching the surface of a piece of specially forged steel with acid, then en- crusting it with silver or gold; an artist is on hand to demonstrate the process, and thereby enrich your appreciation of the wares for sale-pendants and earrings, brooches and bracelets, and various ornamental items for the home-all decorated with birds, flowers, vines, butterflies, ornate geometrical designs, and the laciest filigree.