No, don't change the resistors on the HAT, we don't support the other modes on the HAT. I've tried that before.
One user in the discord recommended the following settings to use in config.txt:
[sh1106]
backlight_pin=0
reset_pin=25
spi_cpol=0
spi_cpha=0
spi_clock_speed=24000000
spi_chip_select=0
button_up=6
button_down=5
button_ok=20
button_cancel=16
button_key3=0
button_left=0
button_right=0
button_center=0
dc_pin=24
"Up on the joystick is up, left is down middle button is ok and bottom button is cancel. Here is a copy of the config.txt for reference."
Try this and let me know what happens.
The issue is that the waveshare HAT has some GPIO in the same PINs as the standard i2s connections.