Although none of our development devices are experiencing the issue we have a few users with the similar issues. Moving some app initialization code to SceneDelegate willConnectTo function appears to fix the issue. In our case it was database initialization and opening database queues which caused the failure, but it may include anything that requires access to FileManager/UserPreferences/etc.

Thank you! This worked, it appears it is saved at more than the system level (iCloud?). I purchased a new device today and did not import anything yet the issue persisted.