I'm not sure exactly which reset you are referring to (e.g. the one Kobo is referring to changed behaviour last year). For sync issues, a sign-out should be enough to fix it.
Signing out is the simplest type of reset. It only clears the KOBOeReader partition, which is then regenerated on the next reboot, and requires you to sign in and add your books again. It also clears some config files from the rootfs, but this isn't really relevant for users. It is generally used to fix database issue. I don't remember if it preserves sideloaded books or not (by only removing the .kobo folder).
The next type is the factory reset from the device info settings page. This one is pretty much the same thing on recent firmware versions.
Finally, there is the hard/manual reset, which is triggered from the developer options (or the device info page on older firmware versions), the boot process, or the critical error screen. This reset will also restore the firmware in the rootfs from fs.tgz in the recoveryfs partition. This will work in all cases, except for if /bin/busybox (including /bin/sh and other symlinks), /etc/u-boot/*, and /usr/local/Kobo/pickel are missing on the rootfs on certain devices which don't seem to be able to trigger it directly from u-boot. There is a small risk when doing this kind of reset since the bootloader is overwritten and restored during the process (I once ran into this issue when resetting my Mini).
As a last resort, for devices with a SD card, the SD card image can be restored. This is obviously the most risky, as it requires opening the device. I am currently looking into the possibility of doing this without opening the device, but I'm not sure if anything will come out of it.
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