Hey Scott F! Yes you can do that! I often recommend that in situations, especially when the source Mac has performance and other issues.
—Plug in the backup drive.
—Open Finder
—Hit File > New Finder Window
—Hit Finder > Preferences > Sidebar
—Put a check next to your Home folder
—Move the Windows side by side (As an example).
—On the left window click on the Time Machine backup
—On the right window click on your Home folder (Both in the sidebar).
On the left window (The backup), Open Backups.backup folder
—navigate to:
”MyMac’sName” > “TheDateOfThisBackup” > Macintosh HD Data (If The backup was done on Catalina) > Users > YourUserName.
On the right Finder window, select on the top “Go” > “Home”.
Now you’ll have two windows showing your Home folder, one from your backup, and the other, your current, new Home folder with nothing in it usually.
I’d recommend not moving over the entire folders and replacing the new ones. But rather:
—Open the Desktop folder on the backup, Select All > Copy. (Or copy/paste/drag selected files).
—In the other Finder window, open the new Desktop folder Edit > Paste. (Or drag, which only copies the file doesn’t move it, but I still recommend copy/paste),
This will move all the Desktop data from the backup to the new Mac.
You can repeat the steps for the other main Home folders from old to new. This prevents transferring all hidden and system/app files, that may have been causing problems, to the new Mac.
You can do the same process for Apps:
Macintosh HD > Applications, move from left to right, (Although many times we’ll known apps require that they still be reinstalled, but many allow to transfer).
So that’s it! Copy the contents of a folder on the backup, and paste the contents in the corresponding new folder!
Some files, as you said, like settings and preferences, are hidden though if you know where to get them.
To show hidden files:
When in the Home folder on one of the Finder windows, on the keyboard press:
Shift Command Period (.). You’ll notice the hidden files appear. One of the being the ~”Library”, this folder holds some app and user data including:
iOS backups.
Mailboxes that were stored “On This Mac”
Safari bookmarks
Preferences for every application in your user folder, etc.
So if you are looking to also restore specific data like that, you can un-hide the files, and let us know what else you need to transfer.
But for the most part, the bulk of the main data, minus the in needed stuff, that’s the way to go, hope that helps!