I believe that an agreement has been reached between the buyer and seller, so yes, a solution has been reached.
My my personal feelings are that all TD's would question damage like that. They are here to make money and there are some unscrupulous buyers (not in this case though) who may damage a watch and try to return it saying the damage was already there.
Any shop where you bought something new and then returned damaged would also question it. Remember our TD's maybe the other side of the world, in a different time zone and speak a different language. They are Trusted Dealers: trusted by us to resolve issues. Which I believe has been done here.