The reset should follow the same process as delete. With the UX and the retention of recovery points for 7 days, therefore, enabling a reset environment to be recovered even if a different organization name is needed when performing the recovery.

You can recover a recently deleted environment (within 7 days of deletion), by using the Microsoft Power Platform admin center or the Power Apps cmdlet Recover-AdminPowerAppEnvironment.

https://docs.microsoft.com/en-us/power-platform/admin/recover-environment

Removing a recovery point to free space should require a secondary action and not be linked to reset.

The confirmation of a reset should require the environment to be typed the same as delete, which follows ux experience elsewhere in Azure when destructive actions are performed.