Fix Error Propagation and No Device Lock

Alongside the CL where we polish the UX to be updated with the mock, this CL aims to
finalize a specific edge case - the lack of a device credential. This is
done and also realizes a second goal - ensuring error propagation for
any non-cancellation based error, as per earlier product decisions.

Bug: 331826599
Bug: 333445754
Test: Video and build tests found in bug

Change-Id: I1015c4142703f3284bdf0e9bac78301ac1d6341a