This, to a large extent, is something I have tried to avoid being too specific about yet (pending the time and will becoming available to write Magical Flat Planet Orbit Simulator, which sounds way too much like a narrative JRPG or satgirl dating game), because as it turns out, in my head, I’m not actually all that much of a shape rotator, or at least a complex multiple shape rotator.
I, too, have considered these two options. (There is also the issue of orbits around Eliéra also needing to precess in accordance with the second element of Eliéra’s rotation; i.e., that which keeps its primary spin axis at a tangent to its orbit, but blah blah tidal effects blah. That one is tiny compared to the others.)
I don’t like the frame-dragging (i.e., make the plane of polar, or rather parallel-component [1], orbits rotate with the planet) solution for a couple of reasons. Firstly, it requires introducing yet another phenomenon to make it happen, and I prefer not to multiply phenomena beyond the demands of necessity coolness; and secondly, it can’t be made to decay neatly like the other one, since all parallel orbits that would otherwise intersect the planet need the same frame-dragging force applied to them or else fall right out of the sky, and physical phenomena tend not to have “same intensity to this point, then go away”, or even “…and then decay” curves to 'em.
Also, it means I can’t have an equivalent to the track-variance of polar orbits, and I like the track-variance of polar orbits.
But I don’t think non-rotating orbital planes (i.e., not rotating with the planet’s spin modulo the blah blah tidal effects given above) are should be all that problematic. By which I mean: orbits naturally follow isogravs, rather than fixed altitudes, which you can see from the effect of mascons. (Especially on Luna, which has rather dramatic mascons for its mass, giving it a rather irregular gravitational field.)
Since the effect of the [for brevity] This Is Some Bullshit field is to distort Eliéra’s gravitational field shape, a non-maneuvering satellite in parallel orbit should follow the isogravs around the planet, and as those isogravs move as the planet spins, it’ll just keep following them. The effect on the orbital shape (and distance, and period) will be much more dramatic in low orbit than in high orbit, where it ultimately smooths out into the familiar near-circular ellipse, but I don’t think it breaks at any point.
(I don’t think this introduces any conservation of energy problems over and above those you get from the mere existence of a continent-sized machine capable of playing origami with space-time whose power source remains unspecified. Assuming the space-time comes pre-bent, objects in free fall still just fall freely.
And yes, my dear sweet gods, the local orbital mechanics math is painful. There’s a reason they were late to space, after all.)
[1] For convenience, I call equatorial-equivalent orbits “perpendicular” orbits, since they are, like equatorials, perpendicular to the spin axis; by the same nomenclature, pure polar orbits become “parallel” orbits.