Okay, I thought I didn't have anything else to say but I'm kind of incredulous right now, and part of me honestly wonders if you're just trolling at this point. The facts that you pick and choose which steps you want to follow and that you also tend to leave out key details of what you did at first...
why would you 1) add water to an already thin product and 2) after adding the water expect dry times to be the same after you altered a KEY PROPERTY with regards to dry time?
At a certain point common sense has to kick in. If you add water to a water based liquid, it's going to take longer for that water to evaporate, hence longer dry time. I have no idea where you got this idea from, but quite frankly directions aren't a buffet. You can't pick and choose which steps you want to follow and then expect everything to work out great.
If you actually did lightly sand at 220, you would know if it's shiny or not.
this makes no sense as dry time is both application method as well as product, but again, that all goes out the window because you added water to the product. Again, at a certain point you need to use common sense.
I've used water based poly just not this specific product on guitars. Orange peel is not inherent to any particular product, it's either from improper technique, bad product, or in some cases extreme environment (too hot/too humid). You hit the first two by 1) not waiting until it's dry to apply the next coat and 2) modifying the paint by adding water.
If you brush on you have a chance of moving the decal and also creating brush marks on top of it.
I remember telling you that you are making this harder than what it needs to be. You absolutely are. I also remember telling you in another thread that this is more difficult than it seems and especially for beginners, you're going to want to practice on scrap wood to get it down.
I also have given you step by step instructions and a ton of information to prep you for success, as have others.
I honestly can't understand your thought process around this, and I'm not trying to insult you or be an ass. I am genuinely trying to be helpful, and you ... I don't know what you are doing tbh.
Good luck.