Not sure yet if this is affecting users negatively.  During the setup registration process (which occurs during this upgrade, since registerDone is not set), SP connects to SN to call playerRegister (which, if you are already registered, will offer "Register or Continue")

However, the setup process can complete if the controller had a saved last SC to connect, and since that notification happens async, somewhat unpredicable results can occur. Ideally, the consequence of this only means that people who have never connected to SN still won't be connected to SN. 

Next step is to repro this scenerio, to more fully understand the consequences...