This issue was submitted as a bug a number of weeks ago, and has also been posted in the forum two other times, with no resolution as far as I can tell.
Here is what happened with our site.
JoomlaWatch functioned perfectly for about 4 weeks after installation - registered users showed as Visitors, and Bots showed as Bots. Then, one day, it stopped working properly. Each day, it logs 1 registered user as a Visitor, then logs all other registered users as Bots.
I tried uninstalling and reinstalling but JW continues to function improperly as described above. I have never had SEF/SEO enabled.