A factory reset on an Xbox does delete everything on the device, including all settings, saved data, games, and any other content. Here are the steps to perform a factory reset on an Xbox:
1. Power on your Xbox console and sign in to the account that you want to reset.
2. Press the Xbox button on your controller to open the guide.
3. Navigate to the "Profile & system" tab and select "Settings."
4. In the settings menu, select "System."
5. Choose "Console info" followed by "Reset console."
6. You will be presented with two options: "Reset and remove everything" or "Reset and keep my games & apps." Select the appropriate option based on your preferences. If you choose the former, it will delete everything on your Xbox device.
7. You will be prompted to confirm the reset. Read the warning message and select "Reset" to proceed.
After the factory reset is initiated, the Xbox console will restart, and the process can take some time to complete. Once finished, your Xbox will be in its original factory state, and all data, settings, games, and apps on the console will be deleted. Make sure to back up any important data before performing a factory reset if you wish to retain it.
Note: It's worth mentioning that if you are signed in to an Xbox Live account, your game saves, achievements, and other data associated with that account should be synced to the cloud, allowing you to redownload and recover them once you set up your Xbox again.