Magic links only work only if user exists?

Hi, I am trying to implement sign in with OTP using this:

  const handleOtpVerify = async () => {
    const { data, error } = await supabaseClient.auth.verifyOtp({
      email,
      token: otp,
      type: 'magiclink'
    });

  const handleOtpVerify = async () => {
    const { data, error } = await supabaseClient.auth.verifyOtp({
      email,
      token: otp,
      type: 'magiclink'
    });

  const handleOtpVerify = async () => {
    const { data, error } = await supabaseClient.auth.verifyOtp({
      email,
      token: otp,
      type: 'magiclink'
    });

  const handleOtpVerify = async () => {
    const { data, error } = await supabaseClient.auth.verifyOtp({
      email,
      token: otp,
      type: 'magiclink'
    });

It works perfectly with existing users, however, if user doesn't exist he will receive confirm your signup email(see the screenshot)?

Why?

Does that mean that I need to have 2 UI screens/pages - one for Create account other for Sign in with email?

Is it possible to handle this logic somehow with one email input field?

Magic links only work only if user exists?

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