Microsoft has acknowledged a new known issue affecting some Windows 10 devices. The Reset this PC feature allows users to reinstall the OS using a local recovery image or the latest Windows 10 version on Microsoft’s servers. Microsoft advises customers to use the Deployment Image Servicing and Management (DISM) command-line tool to bypass this issue. Users have to use DISM to repair the online Windows image used to reset the PC before attempting to use it again. In May, Microsoft provided a workaround for a DISM issue causing Windows images to become corrupted even after they were successfully repaired.
Source: https://www.bleepingcomputer.com/news/microsoft/microsoft-shares-fix-for-broken-windows-10-reset-this-pc-feature/