The fact that Applecare shows my warranty as invalidated makes me want to cry. I hope I can find a sympathetic genius who sees the warranty as invalid and agrees to work with me anyway. Otherwise, this $1099 AppleCare+ Apple Watch that's only a year old is not even heavy enough to be a door-stop.
Apple Watch - Invalidated. sigh
Maybe it is not heavy enough to be used as a door stop, but it will make one very stylish paperweight!
Sorry...I know this must be incredibly frustrating and disappointing. I hope you find a favorable resolution soon (as in a full replacement... hopefully with the deductible waived because of the trouble they put you through).
Something that really bothers me about this is that there is no detailed explanation in the box they shipped back. They do not bother to provide an explanation or evidence to support their claim that you tampered with or modified the watch (unless I missed something). It seems like they owe you that if they are going to deny your claim and invalidate your AppleCare +.
It stinks to make the 2+ hour trek to the Apple Store, and they may or may not be able to help. Speaking as an IT customer service manager, I would probably take this approach: Call Apple Support and ask to speak with a manager. You may need to explain the situation to the first person you talk to, and then explain it again to the Manager and one or two others (in case you are transferred from one manager to another). You might as well go away and write a clear and concise script of what happened since you will be repeating this script. Always be calm and polite (you sound like you are that way anyway) but also be firm. Ask the manager what he/she would do in your situation. Always ask what the next step will be before you hang up the phone. If the manager says they can't help you, ask for the contact information for (or to be transferred to) a director or department head. Don't be afraid to tell them how incredibly frustrated and upset you are with Apple Support, but do so calmly. You want to make them your ally, because there is always something that can be done if the person you are talking to believes you. It's just a matter of convincing that person to move you on to someone who has the authority to make a judgement call in your favor.
If Apple refuses to help then I'd probably email Tim Cook and check on small claims court as an option. Contact the Better Business Bureau as well. I have read about cases where Apple resolved a BBB complaint. I don't think the BBB would look favorably on a consumer being denied warranty coverage without an explanation or evidence to show why.
Good luck, and please let us know how it goes.
Sean