In a support document published on Apple’s website, Apple notes, “Apple has determined that, under very rare circumstances, a crack may form along the rounded edge of the screen in aluminum models of an Apple Watch Series 2 or Series 3.” This will only apply to the aluminum models on the Series 2 and Series 3 and will cover both the 38mm and 42mm sizes.
If your Apple Watch starts to show cracks around its screen like in the renders above, then you are eligble for a free screen repair. This will cover models that are even if it is no longer under warranty, so if you own the Apple Watch Series 2, you don’t have to worry about paying for the repair.
It is unclear as to why the Apple Watch’s screens are cracking as Apple did not dive into the details, but if you thought that it was your fault, it looks like there’s a chance it might not be.