Email the executive team at
tcook@apple.com, you'll likely get a phone call from an executive assistant. Explain the situation, calmly and cordially, explain that you love your watch and that the particular software that Apple uses for diagnosis is faulty by admittance of the Genius that helped and that their "manager" wasn't helpful at all. All you'd like to get your watch replaced for the $99 fee.
After you do that, as I said calmly, I'd bet you'd get a replacement in the mail within 3 days.
Complaining on a forum gets you nowhere.