If I recall correctly, wasn't your Sport model chipping due to a defect though? It's one thing if you hit your Apple Watch against something that causes damage by your own doing versus something that's chipping away in the consistency that something is wrong with the anodized aluminum.
If the
@The_Joker13 brought their Apple Watch into the Apple store, they are not going to replace the watch based on the fact that they chipped/damaged the Watch in one area on their own actions being it could deemed cosmetic damage versus something that's a defect. Where as your Watch may have had a defect, which you seemingly had to prove to them.