Logging in with WP is considered as logging into WordPress.com as a self-hosted site

[shiki]

Describe the bug
When I log in using my WordPress.com credentials, the app shows an error saying "wordpress.com" has Application Password disabled. My guess is that it is assuming that I'm literally logging in to wordpress.com as a self-hosted site.

To Reproduce
Steps to reproduce the behavior:

1. Tap Get Started
2. Tap Log In
3. Enter WPCOM credentials.

Screenshots

login.mp4

Expected behavior
I expected to be successfully logged in and being presented with the list of sites.

Isolating the problem (mark completed items with an [x]):

• I have deactivated other plugins and confirmed this bug occurs when only WooCommerce plugin is active.
• This bug happens with a default WordPress theme active, or Storefront.
• I can reproduce this bug consistently using the steps above.

Mobile Environment
Please include:

• Device:
• iOS version:
• WooCommerce iOS version: 1d4d76a

WordPress Environment

``` Copy and paste the system status report from **WooCommerce > System Status** in WordPress admin. ```

[shiki]

Similarly, logging in with an existing account in the Get started in minutes screen seems to lead to a neverending loop.

I see this error in the log:

2023-05-24 14:38:05.525504-0600 WooCommerce[51903:2074287] ⚠️ No processor found for AccountCreationAction!
2023-05-24 14:38:05.525743-0600 WooCommerce[51903:2073887] SWIFT TASK CONTINUATION MISUSE: createAccount() leaked its continuation!

[selanthiraiyan]

Proposed to allow login using either username or email.

Internal - pe5sF9-1zn-p2

[selanthiraiyan]

This happens when a user tries to login using a WPCOM email marked as suspicious. We should detect that error and ask users to login using their WPCOM username instead.

Internal - p1736480130263679/1736479711.759609-slack-C03L1NF1EA3

[dangermattic]

🚫 Please add a type label (e.g. type: enhancement) and a feature label (e.g. feature: stats) to this issue.