First of all, but unrelated to sneezes and watery eyes, the consensus here on the Fiesta Max is that it's not a very good food. It contains seeds and nuts that are too rich for a bunny, and this may be the cause of his messy bottom. It would be best for his gastrointestinal health to move to a timothy-hay based pellet, like Oxbow Bunny Basics T or Kaytee Timothy Complete. If you're not in the US, we can also recommend other good pellets for the country you're in.
What was the dry bath? Was it a powdery substance? The reason I ask is that the powder could have gotten in his nose or eyes when he tried to clean himself after the bath.
There are a lot of things that can cause watery eyes and sneezing, but few of them come on so suddenly. One possibility other than something irritating his eyes and nose is an upper respiratory infection. The bacteria that cause URIs are always present in the system of a rabbit, so any time the immune system is compromised, they can take over and cause illness. If he's not feeling well in the GI tract, or if he got cold and wet, or the bath stressed him out, all of these things could lead to an active infection. These have to be treated by a vet.
A second possibility is tooth problems. Sneezing is less common with tooth problems, but watery eyes are very commonly found with tooth problems. The tooth roots can grow out of control and interfere with the proper workings of the nasal cavity and eyes, since they're in that region. Also, since he's a Netherland Dwarf, they are bred to have flatter faces which can lead to more tooth issues than a pointy-nosed bunny, like a New Zealand.
I would think that it's probably due to the dry bath. If it persists for a few days (ie if he still has it next week), I'd take him in to the vet to be checked for a URI or tooth root issues. If the snot is opaque, that is more likely to be an infection. The vet should swab the mucous and culture it to determine what antibiotics it is sensitive to. Just putting the bunny on Baytril is not a good choice. It would also be best to get a vet from our listings of rabbit savvy vets because many vets don't understand some of the finer points of rabbit health.
Good luck!