It seems that we must advise people to wipe /var/local before the downgrade.
I am working on adding a 'preparation section' to work around these problems.
Nice for someone to test and find that the "Special Offers" and "Passcode" wasn't part of the problem.
Although we do have one user with a bricked PW-3, and unless we can come up with some rescue plan, I guess I will have to buy it from him.
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