Trying to execute an action (assigning a temp password and sending an email to the user) ONLY WHEN the account was NOT returned, based on the setting below, and a new account was created:
If I understand your problem correctly, you can probably solve this by using Result of step 1:
Result in this case I assume will return the account that was just created. You may want to include a Result of Step 1 is not empty condition on the step.
EDIT: Hmm, just realized this may not be enough, as it will never be empty. Maybe you can check the Created Date on the Result of Step 1, and see if it was created within the last few seconds?
Or you could check to see if the user exists in an earlier step in the workflow and Terminate it if yes.
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