When you select Restore Factory Settings, you reset the Infotainment system to its initial factory settings. This process is required if you sell your car to a new owner. You can perform a reset, through the Infotainment system or via My CUPRA app (Garage section), the option via the app, it will be only available from Release 4.3.0.
Keep in mind that performing a reset deletes all of your configurations in the onboard Infotainment system. Your CUPRA ID account won't be deleted, but it will be unpaired from the vehicle.
Learn more on the My CUPRA app