Apple Watch Series 2 - Digital Crown Unresponcive

Given the steps that you have already tried and given that Apple has already inspected your Apple Watch and advised you that it has a defective display, I suggest that you follow Apple's advice and arrange the recommended service.

Apple Watch is not user serviceable. Apple does not sell spare parts and neither the screen nor the Digital Crown should be replaced separately. Your Apple Watch should instead be replaced on a whole unit basis, whether under warranty, under AppleCare+ or via chargeable, out-of-warranty service, depending on the service options that Apple has advised are available to you.

To arrange service, either contact Apple Support (mail-in service may be available, if required), make a Genius Bar reservation or visit an Apple Authorised Service Provider:

• US: Apple Watch Service Answer Center - Apple Support
• Elsewhere: Apple - Support

Hi there,

I'd like to help you get your Apple Watch's Digital Crown functioning as expected, the Digital Crown is vital to the watchOS 4 experience, so I would understand your concern.

As you have said you have restored the Apple Watch, unpaired it and attempted to clean out the Watch, I recommend you service your Apple Watch online with Apple, or with an Authorized Apple Reseller. If you're Watch is still im Liited One Year Warranty or Apple Care +, your repair should be free of charge, however you'd have to check with Apple before your repair if you are wondering about pricing.

To answer your question, this is most-likely a hardware issue with your Apple Watch and the latest watchOS 4.2 update would not have made your Digital Crown not functional.

Information about Apple Watch Servicing & Repair can be found using the link provided below:

Contact Apple Support - Product Support- Apple

Should you need further assistance, I will be more than happy to assist you.

Happy Holidays and I hope this is not too much stress on you,

Vis

Apple Watch Series 1, Space Grey 42mm