I see that option but what is the import wallet good for? 🤔
Discussion
Import wallet is if you already have a wallet in a different format and want to make it into a full Sparrow wallet.
For example, you could make a 2-of-3 using entirely offline ColdCards. Then, on one of them, export the wallet to a microSD card. That text file basically contains only the XPUBs and master key fingerprints.
You can then import that file to Sparrow, which will set up its own internal storage for UTXO labels etc.
Importing a previously created sparrow wallet