6628a16 changed the behavior of west flash, which formerly used --eraseall which clears both flash and UICR. CONFIG_GPIO_PINRESET=n is intended to support not programming NRF_UICR->PSELRESET to co-opt the reset pin for the reset function, instead leaving it available for the application to use as a button.
It appears that the west change prevents these registers in UICR from being cleared, so that flashing a new image that changes the intended PSELRESET value has no effect.
The workaround is bypass west and use nrfjprog --eraseall, but there probably should be some way to do it in west.