Just tested on a Kobo Libra Colour. Turned developer mode off and did the factory reset from More => Settings => Device information and developer mode was still off after the factory reset. Turned developer mode back on and did the factory reset from More => Settings => Device information => Developer options.
When I restarted, the KLC wanted to connect to WiFi and then downloaded the 4.41.23145 update, installed it and restarted. After the restart, it connected to my computer over USB. At that point, there were 3 directories on the root of the exposed storage. When I opened Kobo eReader.conf, not only was EnableDebugServices not present, the [DeveloperSettings] header it lives under was not present. After finishing the setup, developer mode was off until I did a search for devmodeon at which point the header and entry were created. NickelMenu did not survive the reset.
Just for the heck of it, I then copied the directories from the Kobo exposed partition to a local directory, did a full reformat of the exposed partition and copied the directories back. I use this procedure when creating a disk image since the partition is not formatted during the reset. This led to one person finding books and other oddments that were showing as deleted in a couple of the disk images but were recoverable when he was playing with some tools from his computer forensics course. The format and copy back also leads to much smaller images since the untouched formatted area is highly compressible. I then did the first level factory reset, came back to the language select screen and went through the setup again.
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