Apple 7 Watch doesn’t have water, debris, or physical damage. Why isn’t my Digital Crown working?
Digital Crown doesn’t work. No water damage, debris, or physical damage. What is could the problem be?
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Maybe its is defective. I suggest you take it to an Apple Store and let them look at it:
Genius Bar Reservation and Apple Support Options - Apple
If you want, you can try cleaning it and see if that helps. See the 'Clean and dry the Digital Crown' section in:
How to clean your Apple Watch - Apple Support