This one is supposed to delete whole contact + pubkey, as you say:

This one is supposed to only delete pubkey but leave the contact in:

You can tap either of the two. The result is that if you go back to compose screen, it should refetch the key and be green.
Did I understand it correctly that you are seeing it go gray in stage 4, when using delete only pubkey icon?
But it shows green when using delete whole contact icon?
That would be a bug, I think. Please confirm. The two are supposed to work the same when you go to compose screen.
Originally posted by @tomholub in #1301 (comment)