Apple Care+ covers a damagedWatch, period. To Apple it doesn't matter if it's a small cracked crystal or water logged through. The
Watch is a glued together commodity (the crystal is laminated/glued to the OLED and this is glued to the case). They will just replace and send the broken one to be recycled.
To be more accurate, a waterlogged Watch without evidence of physical damage will be covered under the standard one-year warranty though.
EDIT: Not sure if the poster was talking about Apple Care+ or just Apple Care warranty. Apple should drop this confusing distention.
Apple has never called their one-year standard warranty "AppleCare." Before we got AppleCare+, we had AppleCare, which merely extended the standard warranty into the second year (no accidental damage coverage). It's the posters here who sometimes call the standard warranty "AppleCare." Yet others meant it to be synonymous with AC+. Apple calls it standard warranty.
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