[Bug]: Pin authentication not enabling - Error in DoCipher

[MarioAslau]

Describe the bug

Enabling "Unlock with device PIN?" in Security & Privacy does not enable the toggle. It results in the error: error in storeCredentials [Error: error in DoCipher, status: 2] and the user landing on the Security & Privacy screen with the toggle still disabled.

The error is caught in SecuritySetings screen inside storeCredentials. It happens after resetPassword() is successful and when await Engine.context.KeyringController.exportSeedPhrase(password); fails.

Sentry issues related to this error:

• https://metamask.sentry.io/issues/6980514887/?query=is%3Aunresolved%20DoCipher&referrer=issue-stream
• https://metamask.sentry.io/issues/6971478293/?query=is%3Aunresolved%20DoCipher&referrer=issue-stream

Expected behavior

Enabling "Unlock with device PIN?" should result in it being turned on not off.

Screenshots/Recordings

https://github.com/user-attachments/assets/cab293e0-f9bc-447e-8285-43147fcc6e42

Steps to reproduce

1. New Install (does not necessarily need to be a clean install)
2. Import SRP
3. Go to Settings > Security & Privacy
4. Enable "Unlock with device PIN?"
5. enter password & Confirm
6. Land on Security & Privacy screen with the toggle still disabled

Error messages or log output

error in storeCredentials [Error: error in DoCipher, status: 2]

Where was this bug found?

7.60.2 -> found in 7.59.0 as well

Version

7.60.2

Build number

3213

Build type

None

Device

Samsung Galaxy S22 Ultra

Operating system

Android

Additional context

Software Information: One UI version: 8.0 Android Version: 16

Severity

No response