In simple words, the W-E theorem states that the net work done by forces on a body isis equal to the change in kinetic energy of the body. The kineticKinetic energy includes the sum of rotational and kinetic energies. That means simply sumsumming up the work done by forces on the body: it is equal to the change in KE$KE$ of the body. Remember here that work done by force is important,not not the force itself. It may be that force is present but it's work is zero. Now Now for the sign convention. Using a fixed sign convention for a question will give the same answer. But the generally adopted convention is that if displacement is in the same direction as force, work is positive, while in the opposite direction, it is taken to be negative. A point inat which confusion occurs is that one should be careful about work done by the body and work done on the body. The sign convention is for work done by the body. For For example. In the compression of a spring,we we apply a force to compress it. The displacement of the spring is in the same direction as when we apply force , so the work done by us is positive ,. Or we say work is done by us (work done on us is negative). But for spring, it applies a force outwards and instead gets displaced inwards. So the work done by spring is negative. Or you say work is done on the spring. (Work done onin spring is positive) Hope I hope it clarifies your doubts.