Interaction between new backup/restore features and reset?

People sometimes recommend doing a full factory reset to sort out problems that come from firmware updates.

Does anybody know how the new backup/restore features would interact with that? If the problem is the update leaving the watch in a weird state, would the backup/restore also just put back that weird state and return the buggy behaviors that the reset was trying to resolve?

And on the other hand, do you know what state might be missing from the backup/restore process that would make it frustrating?

On my FR255 with 20.26, I see "Backup Content" seems to list "Settings", as something I cannot toggle, and "Workouts" as something I can toggle.