So i think i figured out the WoL and RL conundrum.
Explosions are not considered weapon damage.
it's the same kind of effect with explosive rounds.
If you land a critical hit with an explosive round you won't do as much damage as a critical hit with a non explosive round from the same weapon.
This chart illustrates this:
So with rocket launchers theres an explosion and then there is also an impact. the impact is like a regular bullet* and can thus be modified by WoL.
We should check and see if grenades do more damage with WoL or not.
*need to check if rocket does increased damage to crit spots. I know it doesn't show up as yellow, but we do know fusion rifles can crit and those numbers don't pop as yellow. otherwise this rocket impact isn't modified by crit multiplier.