so when I entered my seed this time I was waiting for the next button to be activated and it didn't, so I assumed mobile wallet operates differently, hence my confusion of encrypting wallet and extended seed word.
Whether it's the desktop version or the mobile version, if your seed phrase is correct, you should be able to import your wallet.
Both mobile version and desktop version should generate the same addresses.
Where did you generate your seed phrase?
If your seed phrase has not been generated by electrum, it's probably BIP39 and you must check "BIP39" when recovering your wallet on electrum.
Take note that passphrase is different from password.
If you have extended your seed phrase with a passphrase, you need that whenever you want to recover your wallet from seed phrase. As mentioned by pooya87, passphrase is also known as 13th word.
If you have encrypted your wallet with a password, it only encrypts your wallet file locally and you don't need that when recovering your wallet from seed phrase.
I guess the problem is with the wallet because I didn't install it from google store, I downloaded from electrum.org
You did the right thing.
It's always recommended to download electrum from its official website.
In general I dislike having a software to hold and manage private keys, I have always generated a key using a web service for it's randomness and then changed some of it's characters to generate a new key offline,
It's not recommended to use web tools for generating keys.
And what do you mean by offline?
If you just disconnected your device from internet when generating the keys, you didn't really increase your security. You should use an air-gapped device.
I think every wallet/key generator is rigged with a master key and that they can derive all the funded keys with that master key when they see a tx in block chain.
No.
Electrum (which is one of the safest wallets) is open-source and its code has been reviewed by many people.
You can be sure that electrum generates the seed phrase randomly and you are the only one who has access to the seed phrase (This is assuming you are not using a fake version of electrum and your device is not compromised.)