As an outside observer, when the Muslims say "Muhammad is the last prophet" and the Baha'i say "no, he's not", it sure seems to mr that you're implying that they got things wrong.
Penguin, this goes back to the title ‘Seal of the Prophets’. We both accept it, but we just understand it differently. Muslims believe this literally, Muhammed is the final prophet. Bahá’ís, we believe that Muhammad was the last in the previous Cycle of Dispensations, the Adamic Cycle, which went from Adam to Muhammad. (As an aside, we believe that this Cycle was just one of many which have passed.)
Here are an article and an essay relating to the subject to check out if you feel that my explanation was too brief:
https://bahaikipedia.org/Progressive_revelation
http://bahai-library.com/momen_encyclopedia_ages_cycles