So after a month going back and forth with Apple it turns out this is expected behaviour. So for all the new people who run into issues where an url has been used by a different app etc I would suggest just creating a new url for app clip.
Thats what we did and be careful in the future when you configure advanced expierences. As soon as one is created for 1 app it cannot be used anywhere else. Maybe apple will decide in the future to change this behaviour, but not now.
Also documentation regarding deleting advanced app clip expierence is misleading as that is actually deactivating and wont "delete" the advanced app clip expierence.
Madiska
Users receive reputation points by contributing quality content to the forums.
Posts include post and replies published on the forums.
Post authors can mark replies as Accepted to indicate successful solutions.
Apple Developer Forums admins can mark replies as Apple Recommended to indicate an approved solution
Post
Replies
Boosts
Views
Activity
Okei managed to bypass this email verification using desktop.
Login to the created sandbox user on your actual device
As the account is not verified there is a "Verify email" button click on it
Apple will send a code to your email
Enter the code on your device.
With this I was able to verify my email.