Yes, it does sound like you’ll need a new display.
=== Update (12/17/2018) ===
@mayer - I’ve given up fixing the Apple Watches.
Christine is yours the same location as this vid Mayer offers a link to? If it is then the Taptic engine sits just under the display at that location. Do you often have the Taptic firing off? If so it could be overheating the display at that location.
Yes, it does sound like you’ll need a new display.
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=== Update (12/17/2018) ===
+
@mayer - I’ve given up fixing the Apple Watches.
+
+
Christine is yours the same location as this vid Mayer offers a link to? If it is then the Taptic engine sits just under the display at that location. Do you often have the Taptic firing off? If so it could be overheating the display at that location.