Ok, you can remove the one you copied over. Zen Cart will use the one in template_default if there isn't one in your template folder. Anything put into your /YOUR_TEMPLATE/ will "override" the default. See more info here: https://www.zen-cart.com/tutorials/i...hp?article=230

Try copying a few words of text from the forgot password email, then search for that in Tools > Developer Toolkit. That will pinpoint where the email is being created.

Also, try searching through your files for all /YOUR_TEMPLATE/ overrides in your website. There may be a file somewhere, maybe in modules or classes, that would control part of the password process - perhaps there's something wrong in one of those files.