Sign-up: Bad UX when trying to sign-up an already existing account

[Garbash]

Current behavior:
(1) Try to sign-up an existing account in sign-up screen.
(2) Receive message "Your request has been successfully submitted.
Please check your email to activate your account."
(3) Get email and activate link
(4) Receive error: "Activation failed, and something went wrong"

Desired behavior:
(1) Try to sign-up an existing account in sign-up screen.
(2) Receive message "account [[email]] already exists, would you be interested to [reset your password?](link to /pw-reset screen)