It needs to be reset completely. This screen usually only shows if the device passcode was entered wrong 10 times. In that case there is no way to regain access to any data and the device has to be wiped. It's a security feature so that if the device is stolen nobody can try to unlock the device. Unfortunately the screen with this message isn't communicating clearly what is going on, but that's it.
That’s interesting since I never forgot my password for this device. I happened to decide to use the day I found the screen locked instead of my iPhone.
That’s interesting since I never forgot my password for this device. I happened to decide to use the day I found the screen locked instead of my iPhone.