I had my sub leak once while scuba diving. Prior I had been working in extreme dust conditions for months. I would occasionally find crown loose or popped all the way out.
The layman way I see it is if you can turn the crown to set time date then there is a connecting rod that goes from the outside knob to the inside mechanism. That rod has to be sealed by an inner o-ring that you cannot see. O-rings need to be clean and dirt free to function properly. One microscopic piece of sand will cut the o-ring when rod is turned inside it. So that outer o-ring you can see below the crown will not pressure proof the innards of the watch by itself but will act like a filter to stop dirt from getting to the critical internal o-ring seal.
Some dont know what an o-ring is: It is a rubber doughnut that creates more sealing when more pressure is applied to one side of it.
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