water is generally the opposite of a lubricant. the same forces that hold it together in drops will wet 2 surfaces and pull them together.
the intuitive sense of water as a lubricant only works because water can be a bearing surface. a thick enough water layer can form a barrier between 2 surfaces. like a car hydroplaning. the water isn’t reducing friction between the tire and the road, the water is taking over as the surface the car is driving on… and it’s a liquid.
in the case of weightlifting, specifically, I suspect it has more to do with removing your skin oils (a real source of lubrication).
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