Complete Recovery 9.4.4

Basic backup and recovery question. I want to perform complete restore and
recovery using continuous archive mode.

Lets imagine we have a single table MYTABLE. Here are my high level steps

1) Add a record A) to MYTABLE
2) Take a file system backup to be used for recovery. This backup includes
archive logs
3) Add a record B) to MYTABLE

Timeline -> incident happens need backup

4) Stop PG
5) Make copy of current state including PGDATA w/ pg_xlog and WAL archives
6) Cleanup PGDATA /wpg_xlog and WAL archive directory
7) Restore backup taken in step 2, placing contents in PGDATA /w pg_xlog
and archives
8) Remove contents of pg_xlog
9) Copy contents of pg_xlog in step 5 to PGDATA/pg_xlog
10) Create recovery.conf file with cp
/database/postgres/product/9.4.4/archive/%f %p
11) Startup the server

What I see happen is 1) restores but my change in step 3) is not.

Can anyone explain why this is?