We encountered similar issues that we need to delete those Contacts in Archived folder. Unfortunately, there was no option to do so even though Support Team has called trying to rectify the issue.
He has suggested to update the current contact with a different prefix then match again against in Archive which I found its time consuming and not logic.
Xero will need to find a solution whereby information in Archive folder could be deleted directly.
We encountered similar issues that we need to delete those Contacts in Archived folder. Unfortunately, there was no option to do so even though Support Team has called trying to rectify the issue.
He has suggested to update the current contact with a different prefix then match again against in Archive which I found its time consuming and not logic.
Xero will need to find a solution whereby information in Archive folder could be deleted directly.