After I download Sparrow wallet, should I open up a New Wallet or Import a Wallet?
You should choose "New wallet".
I tried creating a New Wallet and I selected the option "Show Derivation" and entered in the 44'/5757'/0' derivation path that was previously shown to be causing an error on my Electrum wallet. However, once this wallet was created and connected to my Ledger, it is clearly a new wallet with no history and obviously no BTC that I could send.
Do your addresses you are trying to recover access to begin with "1"? Do the addresses in this new Sparrow Wallet begin with "bc1"?
If you are indeed trying to recover coins from
https://planbetter.org/payouts-legacy as satscraper suggested previously, then your coins should presumably be on legacy addresses, so next to "Script Type" choose "Legacy (P2PKH)".
Click "Connected Hardware Wallet" and then "Scan". Then click "Show Derivation" and change the path as you did before importing it.
In step 10, instead of clicking "Apply", change the derivation path to m/44'/5757'/0' first, then click apply.
You need to change the derivation path on the step where you first scan for the hardware wallet. It won't let you change it at this final step - it just displays it.