Factory reset bootloader vs re-imaging SD with fresh OS

[/RaspberryPi]

The first option when using the RPi Imager app is to load an SD card with 32-bit Bullseye. The app also has an option to use an image described as a bootloader to "restore the factory default settings".

How is that any different than simply wiping and re-imaging the SD card with the OS?

Let's say I image an SD card with the most recent 32-bit Bullseye, and after completing the first boot, I update firmware with sudo rpi-update. Then let's say I screw up the OS beyond repair, so I decide to start over from scratch. Were those earlier firmware updates permanent? Would firmware be the the difference between "restore the factory default settings" and formatting/re-imaging the SD card the normal way? If so, is firmware the only difference between the two options of the bootloader ("restore factory settings") vs a standard OS image?
submitted by /u/the_hand_that_heaves
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Source: https://www.reddit.com/r/raspberry_pi/c ... g_sd_with/