Got hit by this too. Weird.
Resolved it by creating another wallet in Yori, using the same recovery phrase, and a different name, without deleting the existing wallet. This then asks you to set a spending password, there is no other. You can then remove the other wallet. You’ll see that both have the same ID displayed under the name.
The only funny was that it took a short while to realise that the wallet was staked, but it soon caught up.
Have confirmed that I can now send ADA with the new wallet/spending password.