Just to update. First let me say it was not a screen protector. Just left the Apple Store and they confirmed that it is something under the screen. Secondly I bought the Watch from T-Mobile phone customer service last Saturday and received it on Tuesday. I know I was lucky. They will have to ship it out and it will be 2 to 6 days. The Genius checked in the back but said he didn't have any in any color. I could have went through T-Mobile but I'm hoping Apple will have better replacement stock. I know I got really lucky getting this watch the first time through T-Mobile so fast. Just sucks I only had it a couple days. But I did add Apple Care +, I'm paranoid now. Only good thing is while obsessing over the circle I saw light scratches so I'll definitely be putting on a screen protector, I'm hoping they send a new one instead of repair.
Also the Genius said that Apple doesn't really keep in store replacement that much anymore. So I asked about the IPhone. Because I by AppleCare to have issues fixed on the spot. If I have to wait I would rather just get the carrier insurance for my phone. But she said most phone instances they can fix on the spot.