IMPORTANT: Updating to Android version 449 or iOS version 1.17 will require to open a new account.
Step 1, write your passphrase if you haven't done so already.
Step 2, in-app BTC balance will show zero. Your existing BTC will need to be transferred to the new BTC wallet address using
https://bip32jp.github.io/english/recovergems.html (type your old passphrase) for the BTC to be displayed by the App.
Your app sucks. You are lucky no one uses it or this would have been a disaster.
Last time i checked the app had a 4.5 star rating on the play store, won citis mobile challenge, been on r/bitcoin frontpage multiple times in couple days, had more than 10k wallets opened and been written about in the coinbase blog
https://goo.gl/bFnUHs. That update what you are talking about isn't hard to understand, by default everyone must store their passphrase and even when they upload to a new version they can recover their btc anyway so no btc is lost and it's no rocket science. It was posted at a time where the app didn't had many users, all new users don't have to do this.
As is true for most software, the developers are at liberty to make changes at any given time if needed, same as btc, eth etc.