Hey, I have had the same issue. My watch suddenly stopped working (of course 17 days outside of Apple Care warranty). I took it to the Apple store and upon inspection found the battery to be swollen and the screen beginning to lift. The advisor said it should be covered under quality assurance despite it being outside of AppleCare warranty. It was sent out to the watch repair depot. A week and a half later, I got an email stating the watch has been received and they found ‘additional damage’ and wanted $209 to fix it. Curious what this additional damage was, I called Apple Support and spoke with an advisor. He looked into the file and couldn’t say conclusively what the issue was but theorized that they may be saying the screen has lifted and that is what the additional damage was...to replace the screen....which is odd since the screen lifted because the battery is swollen? He suggested going back to the Apple store and see if they can push the claim through under warranty as the fellow in the call centre couldn’t do much. So, went back to the Apple Store a couple days ago and spoke with a repair specialist (can’t remember his title exactly). He looked up the repair status and confirmed he could not find any information what the “additional damage” as there was no documentation. He said his hands were tied on pushing the claim through. His suggestion was to not fix it as for $90 more or less I could get a new series 3 watch, and to call Apple Support back and request the service details. So I did call Apple Support back today, and same as before, the advisor couldn’t find any documentation. As the watch is being returned to me as it timed out waiting for my repair payment, he suggested i have it sent back to the watch repair depot, again and try calling back to get more information at that time...Long story short, battery is still swollen and watch doesn’t work. Never had this issue with Apple before, always have been very good. Quite disappointed at the moment. My plan is to send it back again and see what happens....