This is a complicated issue that is really only relevant to collectible vintage watches and depends greatly on the specific watch.
For lower value watches below $1k let’s say, it’s not financially plausible to have a case professionally refinished to factory specs. So if the case has been badly polished in the past, with rounded edges etc, you are going to have to live with it, which is not appealing to many of us.
for high end watches, it just depends how badly the watch has been polished in the past. It can be worthwhile to pay for professional refinishing, which can even involve adding material, and in many cases it won’t reduce the value, if one is replacing a poorly polished case with a nicely refinished case.
The uncommon situation where the original case is still sharp is always going to be the most desirable.
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