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Thanks, will reproduce it and notify engineering about it.
Using iOS SDK 3.3.0, these are the steps to replicate:
1. Kinvey.sharedClient.initialize(appKey: appKey, appSecret: appSecret, encrypted: true) success
2. User.login success
3. Kinvey.sharedClient.activeUser?.logout() success
4. Re-run app, Kinvey.sharedClient.initialize(appKey: appKey, appSecret: appSecret, encrypted: true) fails
When "encrypted: true" is removed from initialize, then initialize succeeds after app restart.
I presume this is a bug. For now, I will use initialize without using encrypted.