Numerous thin-walled bushings, injection-molded from AS4 short carbon fiber reinforced polyetherketone (AS4/PEK) composites, are employed in the chains of stenter heat-setting machines. These bushings rapidly deteriorate under the hygrothermal-mechanical loadings prevalent in their service conditions. This necessitates regular replacements, critically limiting machine efficiency. In this paper, considering hygrothermal-mechanical loadings, the macro–micro dual-scale damage model of composite bushings is established. The wet and thermal effects are introduced into constitutive models and damage criteria based on the macro–micro mechanics of composites and their constituents. The micro-damage and macro-destruction phenomena in the bushing are analyzed, and the related measures are proposed to delay its failure. Comparing the simulation results with the test, the macro–micro damage and failure behavior are discussed for the failed bushing. It reveals that stress concentrations near AS4 fibers initiate interfacial damage and microcracks in the PEK matrix, inciting interface debonding and matrix fragmentation, ultimately provoking composites failure. Increasing the interface thickness can delay the onset of damage. Fiber tension failure, matrix tensile, and compressive failure induce destruction at the component extremities. According to the influence of hygrothermal performance, within the glass transition temperature range of 160 °C to 240 °C, selecting composites with higher glass transition temperatures can enhance the failure strength of bushings by 19 %. Conversely, within a moisture absorption range of 0.5 % to 0.8 %, opting for materials with lower moisture absorption decreases the failure strength of bushings by 37 %. Optimal failure strength is achieved with composites having a 0.5 % moisture absorption rate and a 240 °C glass transition temperature.