I'm not sure which DB watch status is stored in. Assuming watch status saved in jellyfin.db, removing library.db and re-adding libraries would likely result in watch status reset anyway.
Jellyfin 10.10.7 (Docker)
Ubuntu 24.04.2 LTS w/HWE
Intel i3 12100
Intel Arc A380
OS drive - SK Hynix P41 1TB
Storage
4x WD Red Pro 6TB CMR in RAIDZ1