It’s good to see that despite the Apple Watch Series 0 and Series 1 being so old that Apple is still offering repairs on it. However the problem with older device models is that eventually it gets to the point where producing spare parts and components for it might not be a good use of resources anymore.
The good news is that if you have an older Apple Watch that is in need for repair, there is a chance that you might find yourself with an Apple Watch Series 2 offered as a replacement. This is according to a document obtained by MacRumors from their sources in which it seems that Apple is now offering customers an Apple Watch Series 2 as a replacement device to older Apple Watch customers.
This is apparently due to the shortage of some parts, but it does not mention what parts it could be, so it is unclear as to what kind of problem your Apple Watch needs to have in order to qualify for this “upgrade”. Also it should be noted that this upgrade is only for the Apple Watch Series 0 and Series 1, so newer models do not qualify for this, i.e. Apple Watch Series 2 being upgraded for free to the Series 3, and so on.