Can't re-encrypt local store

I am trying to both login and sync on a new computer. I originally logged in just fine but was not asked for the password (I have sync account but I logged in with the hub account). I tried sync and it downloaded all my data but then failed to decrypt it. After that I logged out and on login I provided my user name and the key from the other computer. However, that fails with:

Re-encrypting local store with new keyError: attempting to decrypt with incorrect key. currently using <hash>, expecting <hash>

Location:crates/atuin-client/src/record/encryption.rs:132:9

The local store is working fine btw - no problem accessing it - but then for some reason the re-encryption fails. Any ideas of what I might be doing wrong?