If you type devmodeon in the search box and do a search, you will enable developer mode. If you look under Settings => Device information, you should see a Developer options item at the bottom of the page. Tapping on view and going to the last page, you will see a Factory reset your ereader. This is like the manual factory reset and wipes your Kobo back to the factory firmware (basically, as it came out of the box).
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