Dammit...

While trying some other things, I found a way to make it accepts the changes. The file/directory ownership was not correct in the previous tries ("nemo:nemo"), and should have been "nemo: privileged" for both databases...

So all I had to do was to replace the two databases (not sure if the first one was needed), and set it the correct ownership.

I still don't understand what that "privileged/Contacts/" directory stores and how that would/should differ from the "Contacts/" directory.

Does anyone knows the logic behind this in SFOS ?