I had a 1998 firebird when I was 19 (thank you mom). There’s a dude in the neighborhood I live in now, 20 years later, who has that car.
I stopped him one day and said, “hey, I lost a car like this in a flood ages ago and traded it for an ugly little Escort. You think this is it?” “Haha, I doubt it bro, but it was a flood car my dad bought like 15 years ago so, maybe? He got it pretty far away from here though.” I said, “Bro, I have the VIN in an old file. For fun, let’s check it.”
Sure enough, it was my old car. Funny thing is, his dad bought it in Missouri and I had it in WV. Now it’s in Va in the same neighborhood as me.
My guess is that “lost” didn’t mean completely gone or destroyed, but “totaled” aka damaged to the point it would cost more to fix than to just buy a new car. But “totaled” cars can often be sold for scrap, or sold to be repaired to the point where they are at least drivable, even if certain systems don’t work or there’s a risk of issues (like mold or electrical problems) down the road. Which is apparently what happened here.