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Definitely option two. But remember the Thylacine was a myth until pictures started showing up in the 1880's, then it was "extinct" in 1933 but sightings kept being reported. Since the mainstream science community typically won't believe anything exists unless it is on the necropsy table, these reports have been blown off. Then footage starts to trickle in that is compelling enough to make them reconsider and to start looking at them again.

The Okapi was only recognized as real in the 20th century. Then it was thought to be extinct and those that reported seeing them were treated as deluded idiots. Now practically every decent zoo has one.

I think with all of the unexplored land and the vast 90% of unexplored oceans, when we decide that a report is not reliable because we have not seen it or there is no footage, we are doomed to miss it unless it bites us in our collective trouser seats.

But THAT (OP pic) is a coyote.

Now, ask me how I feel about what science calls "primitive" cultures.