Red Exclamation Point

I have an iWatch that I had sent out to be looked at for it was not connecting to my phone. Mind you, it was still working. I was using it for time reading and Mickey Mouse was my watch face. I sent it out (postage paid by Apple-thank you) and I was told it has a hardware issue. Fix it for $229.00 or have it returned to me in its as-is condition. I chose option B. I was simply going to cont. to use it for time telling alone. When I received it and opened the box my watch face displayed a Red Exclamation Point and a link to get help. This was not on my watch face when I sent it! I do think it is fair. What did Apple do to my watch that it does not display the time anymore?!