When a compressed metal spring is dissolved in acid, its potential energy is transformed primarily into kinetic energy as the structural integrity of the spring fails, causing its pieces to disperse. This kinetic energy is then dissipated as heat due to friction with the acid, ultimately raising the temperature of the solution. The discussion also touches on the electrochemical effects of a strained metal, suggesting that some energy may convert to chemical energy during corrosion. In scenarios where the spring is encapsulated, the energy transformation dynamics change, with less turbulence expected, but mechanical energy can still convert to heat through waves. Overall, the conversation highlights the complexities of energy conservation and transformation in chemical and mechanical systems.