Failed wallet recovery unexpectedly still creates wallet from seeds

[brianp]

Describe the bug
I had a wallet from February before network resets occurred in March.
After deleting my wallet from Aurora I attempted to perform a recovery from seed words on this same wallet. This fails 3 times with different errors.
After the failed recovery I decided to create a new wallet. The "new" wallet has the same address as the one I had attempted to recover. This is quite confusing considering the recovery had failed.

This may only be reproducible with a wallet that is expected to fail recovery. Such as wallets used in previous forks, or before resets.

To Reproduce
Steps to reproduce the behavior:

1. Have a wallet from a previous fork or reset
2. Delete the wallet
3. Attempt to recover the wallet from seed words, three times
4. Receive three different errors
5. Create a new wallet
6. Follow wallet creation steps
7. End up with a wallet containing the same address as the one we attempted to recover

Expected behavior
After the failure of recovery, if I select "Create a new wallet" I expect a new wallet, and not the wallet I had attempted to recover, which failed.

If we can regain access to the original wallet, but without recovering the previous coin, this should be a distinct option offered to the user after the recovery fails. Having it happen by default when creating a new wallet is highly unexpected.

Screenshots

Smartphone (please complete the following information):

• Device: iPhone XR
• OS: 17.4.1
• Auora: v0.26.0 (b706)

[TruszczynskiA]

@laalauren1 We will investigate this issue soon.

[Anziskavds]

Tested unsuccessfully on Aurora Esmeralda v0.27.0(b748). #1122

[Anziskavds]

Tested successfully on Aurora ESMERALDA v0.27.0 (b750) on an iPhone 12 iOS 17.5.1.