Known issue breaking ‘Reset this PC’ on Windows 10, version 1607 up to 1909 was addressed by Microsoft with the release of the KB4598479 servicing stack update as part of the January 2021 Patch Tuesday. The issue was introduced last year with the standalone KB4524244 security update released on the February 2020 Patch Tuesday released. Users experiencing this issue can reinstall the operating system using either a local recovery image or the latest Windows 10 version available on Microsoft’s servers. In October, Microsoft shared a fix for a similar known issue affecting Windows 10 devices for certain hardware configurations.
Source: https://www.bleepingcomputer.com/news/microsoft/microsoft-addresses-issue-breaking-windows-10-reset-this-pc/