What's happening with my headlights?

Hi all,

First please forgive my lack of knowledge with cars.

Long story short, I recently purchased a set of headlight restoration kit and tried polishing my car's slightly hazy headlights. I went through 600/1000/2000 sanding, some compound rubbing and finally some oily sealent(?).

It all worked as intended until the first rain. Once the lenses are washed by water they seem even hazier than they used to be. However, if I apply the oily sealent again they would become clear…..well until next time it gets in contact with water.

Can someone shed some light please?

Thanks in advance.