Hey, as the name in the image you posted suggests, this is for the Envoy seed. It is a stand alone mobile ‘hot’ wallet where the seed words live on your phone, and when you enable magic backups as you have, an encrypted copy of this key is also stored in your iCloud keychain.
Your Passport seed never leaves the device, and does not form part of the Magic Backup.
That part makes sense, but here’s what isn’t clear:
in my envoy app I have two wallets. One labeled mobile and one labeled primary.
I can send and receive from both wallets using this app
Does the Envoy seed give control of both wallets since they’re both controlled using the Envoy app? Or does the Envoy seed only work to recover the “mobile” wallet in blue above?
The envoy seed will only allow you to spend from the mobile Envoy wallet. To authorize any spends from any Passport accounts, you need the corresponding Passport device.