IPhone "erase data" request ignored

My iPhone got stolen and went offline. I went and ordered an "Erase Data" request through iCloud, and it said that it'll get deleted as soon as the device is online.
iPhone did not have a pass code...
I also initiated "sign out of all sessions" through gmail, so that it won't be possible to read my mail and reset iCloud password...
So the next day I get an email that my iCloud password was reset. The thief disabled FindMyIphone by following the reset password link for iCloud. Through gmail account logs, I saw that he entered my email using the regular Mail app which DID NOT sign out same as all other google account sessions...
I don't get it. How is it even possible that the iphone didn't get erased and the thief simply used it regularly without issues - checking Mail, etc ? Is it because of no pass code ? Or is there some bypasses to basically ignore/cancel the erase request ?

Not sure what you mean by that, but again, unless you changed your mail password, they could still have accessed it.
They probably cancelled the request by signing out of iCloud, which they can do since they now know your password. If they sent the password reset request before you sent the remote wipe request, they would be able to get online to read the mail and it wouldn't be wiped.

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