The reset button seems to reset technical settings of the mixer. For example, in my case if I set the mixer to 48KHz sample rate, reset puts in back to the factory default of 44. The manual describes it like this: Reset Mixer – Resets all mixer controls to factory default. This does not erase any user presets on the mixer or on a USB drive.
There is another button called "Erase internal storage" that will get rid of all your scenes stored inside the mixer, but not on any USB drive in the rear slot. Finally there is a "Format USB" button that would get rid of all presets stored on external USB, as well as any recorded sessions.
I also noticed that they talk about an output preset called "Reset", which is exclusively for resetting the output parameters. Found by tapping the "Main" button above the main output slider and going to the presets tab & recalling it.
George, I completely understand your frustration regarding this situation. However, we are not in "normal times" at the moment. Touchmix is easy to use, compared to say, Behringer's Byzantine XAir Edit, and I can say with confidence that the original K series & KW series amplifier modules are some of the best designed & constructed powered speaker amp modules ever made (I live in the 3rd world, have not seen the K.2 series yet & have no opinion on them). I will not fanboy for any product or company under any circumstances, but I will call out superior or inferior electronics engineering when I see it. I do not see any obvious inferior electronics engineering in the Touchmix 8 or 16, other than they made an assembly mistake on some mixers, and they absolutely should have done a recall on this. In your case, it seems to be a genuine, legit electronics failure of some other components.