Hello there,
Reset is just data deletion and gives fresh OS installation from the cloud or drive. In theory, when doing a “reset this PC” in Windows it will securely erase all your files.
Resetting reinstalls Windows , but lets you choose whether to keep your files or remove them and then reinstalls Windows. You can reset your PC from Settings, the sign-in screen, or by using a recovery drive or installation media.
Recovery options in Windows https://support.microsoft.com/en-us/windows/recovery-options-in-windows-31ce2444-7de3-818c-d626-e3b5a3024da5
Hope this resolves your Query !!
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