Describe the bug

Initiating a transaction with a 'Low' gas fee, or selecting low values through the 'Advanced' gas settings, followed by a decision to speed up the transaction, results in the transaction being marked as 'Failed' in the Activity tab. However, upon reviewing the transaction on Etherscan via the link in the 'Transaction details', the transaction is labeled as 'Dropped and replaced'. The subsequent transaction listed on Etherscan, sharing the same nonce, is marked as 'Success'.

Expected behavior

User is able to speed up the transaction with low gas fees.

Screenshots/Recordings

Current production 11.4.1:

RC 11.5.0:

State logs:
MetaMask state logs.json

Steps to reproduce

1. Start 'Send' transaction
2. Choose 'Low' gas or set low gas using 'Advanced' gas settings
3. Confirm the transaction
4. Go back to Activity tab
5. Speed up the transaction
6. See the transaction is marked as 'Failed' within MetaMask Activity tab
7. Click block explorer link in Transaction details
8. See the transaction marked as 'Pending' for some time and then the status changes to 'Dropped and replaced'
9. Go back to block explorer transaction list and open the subsequent transaction
10. Note that this transaction has the same nonce as the previous 'Dropped and failed' one but this tx is marked a 'Success'

Error messages or log output

No response

Version

11.4.1, RC 11.5.0

Build type

None

Browser

Chrome

Operating system

MacOS

Hardware wallet

No response

Additional context

No response

Severity

No response