I think you may have misunderstood. The beginning balance is correct.

The cleared balance is = starting + credits - debits.

So, when starting the reconciliation,  cleared = starting. Or at least it should be. It's not :(.

There are no entries in the discrepancy report and since the starting balance is correct, I would not expect there to be any.  Therefore there is no point in undoing the previous reconcile as it is correct.

So, why is the cleared balanced wrong?