The backup is done before you upgrade the OS. As to factory settings I never found that to put the machine back to work with say a phone (Android, iPhone or other.)
There is something worth knowing. If you opted for an email login it may look like the apps are gone but here I found then and put the shortcuts back where I wanted them.
I upgraded my computer to Windows 10 today. I had deleted some of the apps needed to get pictures from my phone, so thought I would use the reset option to get back to the original state when the upgrade had conpleted, not realizing it would delete all my programmes as these were termed 'apps'. I now don't have the option in 'recovery' to go back to Windows 7, nor the option in 'advanced start up' to reset to factory settings.
I want to get back to Windows 7 so I can use the system image and my back up, both on external HD, to reinstall all my programmes but can't think how I can do this.
Can anyone help?