While the display on the Moto 360 isn’t an AMOLED, and thus isn’t susceptible to the most egregious of screen issues — image burn-in, the LCD display does appear to be susceptible to an image persistence issue which typically arises after the watch has been on charge for a while. As you can see in the image shown above, while the settings screen is being displayed, there’s still a residual, ghosting image of the charging display.
Unlike an AMOLED, which can burn an image into the display if a static image is displayed for too long, the persistence issue on an LCD isn’t quite so permanent; shutting the screen off for an extended period is likely to resolve the issue, as is displaying a moving image of some kind to ‘knock’ the pixels back to the proper behaviour.
The issue appears to be a new one, as reported by Android Police. Reports are limited, so precisely what combination of factors will lead to the image persistence issue aren’t known, but it could be a factor of leaving the watch on charge for too long. It’s possible that Motorola might look at changing (or blanking) the charging screen to prevent this kind of issue from continuing to happen in future.