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> When I try to create an ETH account
What do tou mean exactly ny „create an ETH account“ ?
If you entered the exact same seed phrase, the account you were using previously is still good and derived from the same seed.
If you „add account“ it will „create“ a second ETH account, which will cause an error if the first account wasnever used and had a zero balance: With ledger live, you can only „create“ a second ETH account if the first one was used.
When you use a new & different seed, then you are creating a first ETH account for this seed, so it works with no error.
So what you describe is normal.