https://wccftech.com/macos-monterey-adds-new-erase-all-contents-and-settings-option-when-resetting-your-mac/

Apple announced the new macOS Monterey update at its WWDC 2021 event yesterday with a plethora of major features. The update will be available to all users this fall via a software update. At this point in time, macOS Monterey rests in the beta phase and available to developers. One rather important feature that Apple bundled with macOS Monterey is the option to 'erase all contents and settings' when resetting your Mac.

The option has been available on the iPhone and iPad for quite a while and now we are glad that it is coming to the Mac with macOS Monterey. Previously, you had to erase your Mac completely and then reinstall macOS in order to restore the Mac to factory settings. The new system rest settings will be available in System Preferences.