Hi!, Recently I upgraded my Surface Pro 1 to Windows 10 Anniversary Update (14393.10) from Windows 10 (10586.****).
Before the update I checked Recovery and Advanced Startup if "Restore factory settings" and my recovery partition was ok, but, after the update I checked again and "Restore factory settings " is missing...
(Unfortunately, I cannot rollback to Windows 10 (10586.****) because "Disk Cleanup" deleted "Previous Windows Installations"... (Not related to the recovery partition).
Also, I have the same problems with a HP/Compaq PC upgraded to Windows 10 Anniversary Update, showing the same symptoms...
I think there is a major bug in the Windows 10 Anniversary Update's "Factory Restore Feature"
Anyway, C:$SysReset\Logs\setuperr.log file says:
2016-08-06 13:17:38, Error Factory: No downlevel WinRE available[gle=0x000000ea]
Here's all the content of C:$SysReset\Logs\setupact.log
2016-08-06 13:17:36, Info LogSession: Starting a new log session at [C:$SysReset\Logs]
2016-08-06 13:17:36, Info ResetCreateSession: Succeeded
2016-08-06 13:17:36, Info OnlineUI: Reset session created successfully
2016-08-06 13:17:36, Info OnlineUI: Determining whether Factory scenario is available
2016-08-06 13:17:36, Info ResetValidateScenario: Scenario: [2] Target: [C:]
2016-08-06 13:17:36, Info Session: Checking main OS for a test ID
2016-08-06 13:17:36, Info Telemetry: Checking [C:] for a test ID
2016-08-06 13:17:36, Info Registry: Loading SOFTWARE hive from online OS
2016-08-06 13:17:36, Info Telemetry: No test ID present
2016-08-06 13:17:36, Info Session: Reading system configuration
2016-08-06 13:17:36, Info SystemInfo: Reading BCD settings
2016-08-06 13:17:37, Info SystemInfo: Locating the boot device
2016-08-06 13:17:37, Info SystemInfo: Reading host version number
2016-08-06 13:17:37, Info SystemInfo: Searching for migration XML
2016-08-06 13:17:37, Info SystemInfo: Reading power configuration
2016-08-06 13:17:37, Info SystemInfo: Checking whether target OS volume is accessible ...
2016-08-06 13:17:37, Info SystemInfo: The target OS volume is accessible
2016-08-06 13:17:37, Info SystemInfo: Detecting target BitLocker state
2016-08-06 13:17:37, Info SystemInfo: Checking whether target is healthy
2016-08-06 13:17:37, Info Registry: Loading SYSTEM hive from online OS
2016-08-06 13:17:37, Info SystemInfo: Reading the target's recovery timestamp
2016-08-06 13:17:37, Info Registry: Loading SYSTEM hive from online OS
2016-08-06 13:17:37, Info SystemInfo: Reading target build information
2016-08-06 13:17:37, Info Registry: Loading SOFTWARE hive from online OS
2016-08-06 13:17:37, Info Registry: Loading SOFTWARE hive from online OS
2016-08-06 13:17:37, Info SystemInfo: Reading target's reset policy flags
2016-08-06 13:17:37, Info Registry: Loading SOFTWARE hive from online OS
2016-08-06 13:17:37, Info SystemInfo: Searching target for OEM extensibility
2016-08-06 13:17:37, Info SystemInfo: Detecting Team OS
2016-08-06 13:17:37, Info Registry: Loading SOFTWARE hive from online OS
2016-08-06 13:17:37, Info SystemInfo: Detecting Windows-to-Go
2016-08-06 13:17:37, Info SystemInfo: Locating WinRE
2016-08-06 13:17:37, Info [systemreset.exe] Enter WinReGetConfig
2016-08-06 13:17:37, Info [systemreset.exe] Parameters: configWinDir: NULL
2016-08-06 13:17:37, Info [systemreset.exe] WinRE config file path: C:\WINDOWS\system32\Recovery\ReAgent.xml
2016-08-06 13:17:37, Info [systemreset.exe] Update enhanced config info is enabled.
2016-08-06 13:17:37, Info [systemreset.exe] WinRE is installed
2016-08-06 13:17:37, Info [systemreset.exe] WinRE is installed at: \?\GLOBALROOT\device\harddisk0\partition5\Recovery\WindowsRE
2016-08-06 13:17:37, Info [systemreset.exe] OS install location: \?\GLOBALROOT\device\harddisk0\partition6\RecoveryImage
2016-08-06 13:17:37, Info [systemreset.exe] System is WimBoot: FALSE
2016-08-06 13:17:37, Info [systemreset.exe] WinRE image validated
2016-08-06 13:17:37, Info [systemreset.exe] Exit WinReGetConfig return value: 1, last error: 0x0
2016-08-06 13:17:37, Info SystemInfo: Detecting current WinRE's build number
2016-08-06 13:17:37, Info SystemInfo: Detecting the recovery image's build number
2016-08-06 13:17:37, Warning 0x80070490 in ParseProperty (base\reset\util\src\wim.cpp:861): Failed to select [DISPLAYNAME]
2016-08-06 13:17:37, Warning 0x80070490 in ParseProperty (base\reset\util\src\wim.cpp:861): Failed to select [DESCRIPTION]
2016-08-06 13:17:37, Info Session: Finished reading SystemInfo
2016-08-06 13:17:37, Info -- Begin SystemInfo dump
2016-08-06 13:17:37, Info [PowerSourceIsUnreliable]: [False]
2016-08-06 13:17:37, Info [HostVersionMajor]: [10]
2016-08-06 13:17:37, Info [HostVersionMinor]: [0]
2016-08-06 13:17:37, Info [HostBuild]: [14393]
2016-08-06 13:17:37, Info [BootLocale]: [it-IT]
2016-08-06 13:17:37, Info [BootTimeout]: [30]
2016-08-06 13:17:37, Info [BootVolume]: [C:]
2016-08-06 13:17:37, Info [BootDrive]: [C]
2016-08-06 13:17:37, Info [IsTeamOS]: [False]
2016-08-06 13:17:37, Info [IsWindowsToGo]: [False]
2016-08-06 13:17:37, Info [IsWindowsPE]: [False]
2016-08-06 13:17:37, Info [RamdiskDevice]: []
2016-08-06 13:17:37, Info [RamdiskVolumeRoot]: []
2016-08-06 13:17:37, Info [RamdiskPath]: []
2016-08-06 13:17:37, Info [WinREAvailable]: [True]
2016-08-06 13:17:37, Info [WinREVolumeRoot]: [\?\Volume{130f22e1-a238-4057-ab62-cdaea3bb887d}]
2016-08-06 13:17:37, Info [WinREPath]: [\Recovery\WindowsRE\winre.wim]
2016-08-06 13:17:37, Info [WinREBootEntry]: [{990F2152-B395-11E2-BE6D-F3400F3C790A}]
2016-08-06 13:17:37, Info [WinREVersionMajor]: [10]
2016-08-06 13:17:37, Info [WinREVersionMinor]: [0]
2016-08-06 13:17:37, Info [WinREBuild]: [14393]
2016-08-06 13:17:37, Info [StagedWinREAvailable]: [False]
2016-08-06 13:17:37, Info [StagedWinREPath]: []
2016-08-06 13:17:37, Info [ArchivedWinREAvailable]: [False]
2016-08-06 13:17:37, Info [ArchivedWinREPath]: []
2016-08-06 13:17:37, Info [DownlevelWinREAvailable]: [False]
2016-08-06 13:17:37, Info [DownlevelWinREVolumeRoot]: []
2016-08-06 13:17:37, Info [DownlevelWinREPath]: []
2016-08-06 13:17:37, Info [DownlevelWinREVersionMajor]: [0]
2016-08-06 13:17:37, Info [DownlevelWinREVersionMinor]: [0]
2016-08-06 13:17:37, Info [DownlevelWinREBuild]: [0]
2016-08-06 13:17:37, Info [RecoveryImageAvailable]: [True]
2016-08-06 13:17:37, Info [RecoveryImageVolumeRoot]: [\?\Volume{8699de07-b4bd-496c-9db4-a1eaeeec4927}]
2016-08-06 13:17:37, Info [RecoveryImagePath]: [\RecoveryImage\install.wim]
2016-08-06 13:17:37, Info [RecoveryImageIndex]: [2]
2016-08-06 13:17:37, Info [RecoveryImageReferencePaths]: [[0] items]
2016-08-06 13:17:37, Info [RecoveryImageVersionMajor]: [6]
2016-08-06 13:17:37, Info [RecoveryImageVersionMinor]: [2]
2016-08-06 13:17:37, Info [RecoveryImageBuild]: [9200]
2016-08-06 13:17:37, Info [RecoveryImageEdition]: [Professional]
2016-08-06 13:17:37, Info [RecoveryImageArchitecture]: [9]
2016-08-06 13:17:37, Info [RecoveryImageOEMResetConfigPath]: [\?\GLOBALROOT\device\harddisk0\partition6\RecoveryImage\ResetConfig.xml]
2016-08-06 13:17:37, Info [TargetAccessible]: [True]
2016-08-06 13:17:37, Info [TargetInstallHealthy]: [True]
2016-08-06 13:17:37, Info [TargetVolumeCapacity]: [117991014400]
2016-08-06 13:17:37, Info [TargetSpaceRemaining]: [100757491712]
2016-08-06 13:17:37, Info [TargetRecoveryTimestamp]: [131148865779491255]
2016-08-06 13:17:37, Info [TargetEncrypted]: [False]
2016-08-06 13:17:37, Info [TargetEncryptionSuspended]: [False]
2016-08-06 13:17:37, Info [TargetLocked]: [False]
2016-08-06 13:17:37, Info [TargetVersionMajor]: [10]
2016-08-06 13:17:37, Info [TargetVersionMinor]: [0]
2016-08-06 13:17:37, Info [TargetBuild]: [14393]
2016-08-06 13:17:37, Info [TargetEdition]: [Professional]
2016-08-06 13:17:37, Info [TargetArchitecture]: [9]
2016-08-06 13:17:37, Info [TargetInstallType]: [3]
2016-08-06 13:17:37, Info [TargetHasRedirectedProfiles]: [False]
2016-08-06 13:17:37, Info [PolicyDisablesReset]: [False]
2016-08-06 13:17:37, Info [PolicyDisablesCustomizations]: [False]
2016-08-06 13:17:37, Info [PolicyDisablesDriverMigration]: [False]
2016-08-06 13:17:37, Info [TargetHydratedProvPackages]: [[0] items]
2016-08-06 13:17:37, Info [TargetDehydratedProvPackages]: [[0] items]
2016-08-06 13:17:37, Info [TargetProvPackageInstallOrder]: []
2016-08-06 13:17:37, Info [TargetRuntimeProvPackages]: [[0] items]
2016-08-06 13:17:37, Info [TargetOEMResetConfigPath]: []
2016-08-06 13:17:37, Info [RamdiskMigrationXML]: []
2016-08-06 13:17:37, Info [TargetMigrationXML]: [C:\Windows\System32\srms.dat]
2016-08-06 13:17:37, Info [IsRecoveryMediaBoot]: [False]
2016-08-06 13:17:37, Info [MediaProvPackages]: [[0] items]
2016-08-06 13:17:37, Info [MediaOEMResetConfigPath]: []
2016-08-06 13:17:37, Info [MediaAutoResetConfigPath]: []
2016-08-06 13:17:37, Info [MediaRecoveryImagePath]: []
2016-08-06 13:17:37, Info [MediaComponentStoreImagePath]: []
2016-08-06 13:17:37, Info -- End SystemInfo dump
2016-08-06 13:17:38, Error Factory: No downlevel WinRE available[gle=0x000000ea]
2016-08-06 13:17:38, Info ResetValidateScenario: Supported: [No] Reason: [13]
2016-08-06 13:17:38, Info OnlineUI: Factory scenario is not available: [13]
2016-08-06 13:17:40, Info OnlineUI: User cancelled reset
2016-08-06 13:17:40, Info ResetNotifyCancel: User canceled on page [OnlineResetTypeSelection]
2016-08-06 13:17:40, Info OnlineUI: Releasing reset session
2016-08-06 13:17:40, Info ResetReleaseSession: Releasing session
In this screenshot the partitions scheme seems correct
("Partizione di Ripristino" means Recovery Partition and "Integro" means Intact)

(Sorry for my pretty bad English but i'm Italian :D)
Anyone in the Microsoft Community is aware of this bug/removed feature?
Thanks for help (and patience :D)