If I was interested in deriving an equation for the conservation of momentum for a fluid, I could write down an expression for the change in momentum density of a fluid point using the Reynolds transport theorem:
$$\frac{\partial \rho \vec{v}}{\partial t} + \nabla \cdot (\rho \vec{v} \otimes \vec{v}) = \vec{f}$$
I could also try to write down Newton's law from a Lagrangian perspective for a parcel of fluid:
$$\frac{D(\rho \vec{v})}{Dt} = \vec{f}$$
Transforming this into a Eulerian perspective:
$$\frac{\partial \rho \vec{v}}{\partial t} + \nabla (\rho \vec{v})\cdot\vec{v} = \vec{f}$$
This expression differs from the expression derived from the Reynolds transport theorem by a $\rho \vec{v}(\nabla \cdot \vec{v})$ term—both expressions are the same for an incompressible flow field, but not when the flow is compressible.
Did I make a mistake in applying Newton's law, or is there a valid reason for the discrepancy?