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Seals failing
This is also why when we used to do the battery replacements there was a little blue tub with an oily sponge inside. It was part of the process to rotate the caseback in the pot so the gasket was adequately lubed when closing.
I always called bullshit, until later working on other gasket-related projects (ie motorbike brakes) that it can help assembly massively.
Same thing with screw-down casebacks really. The screw thread doesn't really make the watch watertight, but it helps enable even pressure on the rubber gasket which is doing all the work. That's why old watches lose their water resistance despite still having functional crown/caseback threads, it's the gaskets deteriorating.