Chosen Solution
My battery got swollen and pop-ed off the screen. Note that it’s just the actual screen that detached and not the part where force touch sensor is. I don’t know how to re-seal this part, don’t see anything obvious. I replaced the battery and screen works, force touch also works.
Once you fix your problem you’re going to need some adhesive for it so stay in place and stick. I fixit sells some in their shop Apple Watch (38 mm) Adhesive Strip