Does Thousand Tail Watcher's effect work as a continuous aura, and specifically would Wielder of Water become 3 defense when blocking Thousand Tail Watcher or stay at 1?

Ruling: Thousand Tail Watcher's effect is not a continuous aura. When Wielder of Water blocks Thousand Tail Watcher, it will become a 3 defense.

Nuances:

• Even though Wielder of Water enters combat with 1 defense (copying the attacker), it then gets the +2 defense bonus from Thousand Tail Watcher's effect, resulting in 3 total defense.