A factory reset or Powerwash in Chromebook-lingo means that your computer will dry all local storage and user accounts. Your computer returns to the state it was in when you first opened it. There are a number of reasons to Powerwash your Chromebook. A Powerwash is often recommended when there is a problem with the software or hardware on your Chromebook. Many times, the things we download (apps, extensions, and files) come across the Chromebook feature, leading to the most random stuff. A Powerwash tends to fix these errors by deleting any changes we made to the Chromebook. By clearing all local data, it also provides a speed boost to your Chromebook.
Now that you know why you might want to Powerwash your chromebook, these steps are to redo it: –
On the right side of the shelf at the bottom of the Chrome OS is an option menu where you can access Wi-Fi and Bluetooth options, among other things.
Click Settings in the options menu.

Scroll down to the bottom of the Settings window and click Show Advanced Settings.
When advanced settings are displayed, scroll down to the bottom of the page. There you will find Powerwash as a heading.

Click the button that says Powerwash. A pop-up window will appear asking you to reset the device. Click Restart.

When the Chromebook restarts, this message appears on the screen. Click Reset.

Chrome OS can confirm once again that you want to power your Chromebook. They really want to make sure you want to do this. Don't worry though. It won't hurt your Chromebook in any way.
When you have completed all confirmation, this screen will be displayed for about 10 seconds.

If you do not want to paint your device, do not touch the switch or anything in general until the power source is ready.
Chrome OS will now greet you with the welcome screen you saw when you started the Chromebook. Set up your account and settings and you’re good to go with a new untouched Chrome OS.

You may often have to stream your Chromebook, but it shouldn’t be a problem because most of your stuff would be stored in the cloud anyway. However, you would lose all content in the local download folder. To keep the contents of the local download folder backed up in Google Drive, see this article.