Why? Based on your feedback, pass phrases are much more preferred compared to the current secret seeds we use for secret keys. That’s because people can actually reliably write passphrases in a piece of paper if they wanted to.
This means that all existing wallet addresses will soon be inaccessible from the Pi Wallet, and everyone will have to get a new address. You will need to reset your keys and move to new wallets that is secured by a passphrase.
Due to the nature of crypto, it is impossible to find a "passphrase" that maps to the same "public key" that you had before, thus we need everyone to create new wallet addresses.
These kinds of breaking changes is the reasons we didn't want to invite more than 10K people to try the wallet until things get more crystalized. This way only 10K people get affected by annoying changes like this. Thanks for your patience and for being one of the early testers who contributed to this decision for an improvement.
As a reminder, Test-Pi is not real Pi, has no value, will be periodically reset, and people should never get "attached" to their Test-Pi as it exists only for testing purposes and will be lost after every Testnet reset and with changes like the one coming soon.