Hi @jenilk
I just did a really quick test on a local development environment to see if everthing would still be working when W3 Total Cache is activated. (Since W3TC is a very advanced plugin with a lot of possible settings, a quick test is never enough to really be sure.)
Since we use transients to store the caches, I specifically targetted my test to Object caching. I installed Memcached on my local environment, activated Object caching in W3TC and set it to use Memcached. Everything kept on working as it should ??
However, when I unchecked the setting ‘Store transients in database’ the caching of the REST API broke. At this point I have no idea why, it could be simply that I misconfigured Memcached on my local environment, or it could have some deeper cause. Nevertheless, it is something that we have to dive deeper into in order for us to be able to actually tell what is causing it and if and how we can solve it.
So for now: you can use W3 Total Cache together with our WP REST Cache plugin, as long as you do not uncket the setting ‘Store transients in database’. We will however investigate this further and if possible solve the issues with this setting.