The Windows 11 reset option will only work if you have a valid Windows license on your device. If you used an unauthorized version, the cloud reset option will not work. You can reinstall Windows 11 on your PC by using a valid license.
If you have a valid Windows 10 license, it’s recommended to first go back to Windows 10 using a clean install, removing any unauthorized ISO trace. After this, you can get a free upgrade to Windows 11 again.