No, “Recovery phrase not verified” indicates that the recovery phrase has not been used yet, you can either verify it right there or use it once to recover at id.ai/recovery to mark the recovery phrase as “verified”. The verification button basically does the recovery flow under the hood to validate it’s indeed working as expected.
In II 2.0 this additional verification step and status has been added to have a clear indicator for users that their recovery phrase is written down correctly and actually works as expected.
Overall, we spent quite a bit of time to make sure that the recovery phrase set-up process in II 2.0 is significantly more reliable and able to protect users from making mistakes compared to II 1.0.