Apple Watch Series 3 battery swelling

Is it true apple have acknowledged the battery swelling issue and will repair for price of battery replacement?

When my watch cracked its screen from the pressure of the battery I took it in and was given two options, replace screen which was more expensive than the series 4 watch or buy the series 4 watch. They blamed me for the damage (Apple store in Rundle Mall, Adelaide). I wasn’t the only one who received this treatment, my friend got the exact same response.