Ernie did you check to make sure all the finishes were compatible?All the Watco I'm familiar with is oil based. Was the clear coat also oil based and how old was it? Old varnish won't dry I've found. The chemicals in it, possibly the Japan driers, may have evaporated. I have some that won't dry and I bought some Japan drier but I haven't had a chance yet to mix them and see if I can rejuvenate the varnish.
Someone I consider a master woodworker once told me that a master woodworker is not someone who never makes mistakes. He is someone who is able to cover them up so that no one can tell.