It doesn’t do anything except theoretically delete personal data. Not ‘back to like it left the factory’. And it doesn’t even delete personal data well last I’ve heard.
It was designed to be what you do when you sell the car to clear out nav history, music favorites, location data, etc. But it doesn’t work as far as I know. I believe it’s supposed to delete a certain Linux partition and doesn’t?
What you might want to try is the power off on the menu. Wait at least five minutes without touching anything then open the door to restart the car. Probably won’t help this problem but can’t hurt.