If the error is tied to Xiaomi's Find Device lock:

A: No. Since MIUI 8, factory reset via recovery does not remove the Mi account lock. You still need to enter the original credentials. This is intentional security.

If the troubleshooting steps don't resolve the issue, try the following solutions:

These tools can often "force" a wipe or re-flash the stock firmware even when the phone's internal recovery is failing. ⚠️ Root Causes

Common causes include:

is the safest option. They can perform a "data-preserving flash" or a professional factory reset if the partition is damaged. Are you currently stuck in a boot loop , or are you able to reach the of the recovery tool?

fastboot erase userdata fastboot erase metadata fastboot format userdata fastboot format cache fastboot reboot recovery

Sometimes a simple alternative works.

The “MI Recovery 2.0.1 data wipe failed” error is without hardware repair. Flashing a full fastboot ROM (Method 3) resolves the issue in most cases. If your bootloader is locked, download the correct fastboot ROM for your exact model – do not use a recovery ZIP.

If the standard recovery menu fails, you must use external tools on a PC to bypass the error. Use Mi Flash Pro Power off your device and enter recovery mode by holding Volume Up + Power Connect with MiAssistant in the recovery menu. Connect the device to a PC and use the Mi Flash Pro tool. Select Flash in Recovery Wipe user data to force the reset through the computer. Fastboot Method If recovery mode is completely broken, put the device into Fastboot mode (Power + Volume Down). Mi Unlock Tool

If your device shows "Data encryption unsuccessful" combined with wipe failed: