Did the Royal Navy forget small escorts between the wars?

Did the Royal Navy forget about small escort ships after the First World War?

No. It continued building interwar sloops, but government spending choices and a smaller shipbuilding industry constrained the numbers available.

Sloop construction continued between the wars, despite the claim that the Royal Navy neglected small escorts. In the explanation given here, rapid debt repayment and other spending priorities constrained naval orders. Allowing shipyards to close also reduced the capacity available when wartime expansion became urgent. Producing enough escorts from that smaller industrial base favoured a simpler design that commercial yards could build in quantity.