Horological Meandering

I just took in one of my watches for service and the AD indicated that the blued hands were beginning to rust and would need to be replaced.  I may be naive in asking this, but has anyone seen this before?  It seems that this should not happen even in a watch that isn't waterproof if it is properly cared for.  Thanks.

that suggests that there either is or has been water in the movement.  Replacing hands is one thing but rust in the movement is another.  Either way this suggests that a look inside is appropriate.

That's what I am afraid of.