I just took it to the local Apple authorized repair center. Apple is replacing it for free and one is on its way. I actually do have AppleCare+ on the watch, but highly doubt it would be necessary in this case. I’ve had the watch for a week and a half and only used it in the exact way specified by Apple. While not true of some earlier versions, the series 4 is intended to be used for swim workouts, per Apple, and its water resistant specs should easily be able to accommodate a few minutes of laps in a shallow lap pool.
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I believe that might be correct for some earlier models, but not the series 4. The series 4 has a higher water resistance rating than some earlier models, is explicitly promoted by Apple as being compatible with swimming, has built in swim workout functions, and tutorials by Apple on their website on how to use the swim workout functions. I believe if a series 4 fails while being used exactly the way the manufacturer intends and while still in the warranty period, it should be covered. I think we must be talking about a faulty water seal or something here, which for the series 4 would be a manufacturing defect....again should be (and apparently is) covered under the standard warranty.