I got this same message. When I called them they told me I have the wrong type of crack. I'm in the uk by the way. Screen cracked while the watch was charging.
Same message here. Although my perimeter cracks on my series e3 were nearly identical to those in the replacement notice I was told that since my battery wasn't swelled and my screen hadn't "popped off" my watch did not qualify for replacement. I said that I didn't remember reading anything about swelled batteries or popped off screens in the replacement notice (and the first rep I talked to prior to sending my watch in didn't either) the technical support rep very directly stated that this was the whole reason for the screen replacement. It was pay $289 or go away. They're sending my cracked screen watch back.