Hello,

Thank you for your email & photos.

Unfortunately, from the photos we are not able to identify what the problem is.

It's possible it's winter desiccation (winter burn/drying).  https://extension.colostate.edu/docs/pubs/garden/07211.pdf

Or, you're right it may be too wet. Blue Spruce need high - medium moisture (meaning winter watering during warm dry spells is good). https://extension.colostate.edu/docs/pubs/garden/07403.pdf

What direction is it planted in? Is it on the North or South side of your house? Blue spruce prefer shady, cooler areas (where less water is required). https://extension.colostate.edu/docs/pubs/garden/07421.pdf.

You're welcome to bring in a sample of healthy and affected tissues (on the same branch) that is 18" long. It's $7 for diagnostics if your a Boulder County resident. Our address is 9595 Nelson Road, Longmont CO (in the basement of the agricultural building).

Also please take photos of the ground around the tree (so we can see how it was planted), and of the other sides of the tree so we can see if it extends around. It could be a root injury as well.

We would advise not applying a fungicide until you know if it's a fungus problem.