Edit: Okay, I mean, obviously it's still a bad bug, but maybe it's on the server side now. Which is especially bad. But they could fix without an update.
That said, though, as far as I can tell, this latest version of the story - that photos reappeared on a wiped device seems to be sourced to just that one single Reddit user.
The earlier variation where iCloud photos reappeared seems quite plausible to me and apparently happened to a large number of people. This one, though, if true, would be... like... an epically colossal fuckup.
But considering it's seemingly just one person saying it at this point... I dunno.
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