Apple Watch screen delaminating

As LD150 said, you probably need to replace the screen. This is an Apple Watch SE, correct? If so, it is not advertised as dust resistant, so that may be the case. Now, I'm not a total expert at this stuff, but I believe the Apple Watch can only be submerged for less than 10 minutes and no deeper than 50 meters (or 164.042 feet), or the water could damage the inner hardware and/or the screen.

Hope this helped!

That looks to be like either water damage or screen delamination. Either way it is a hardware repair

or replacement required

see Apple Watch Service & Repair - Apple Support

50m spec does not mean 50m capable. That is watch industry language.

Apple Watches except Ultra are shallow swim only, no showering.