Forgotten encrypted Passwaord

that support article isn't correct.. has not been updated recent enough.

For your #2, you need to tap Reset ALL Settings.

This will not factory reset your iPhone. Nor will it actually reset your Home Screen layout. It will set your wall paper back to default though.

I've answered that question twice in my previous posts

The Apple support document I linked in my prior response tells you that it won't affect your data. So if you don't believe Apple I'm not sure why you'd believe a random iPhone user on these forums.....

If you would just start the process, you'd see that a factory reset is different than what this article is telling you to do.

When you select Settings > General > Transfer or Reset iPhone.. you'll see 2 options presented. One for Reset and the other Erase All Content and Settings. If you select Erase All Content and Settings, that will bring you down the path of restoring to factory settings. If you select Reset like the article tells you, then you will not restore to factory settings.

If you're really that worried, then buy iCloud storage space and back your iPhone up to iCloud before doing this.

I personally did this 2 weeks back just for a test.. that's how I know the support article is wrong for #2.

As long as you follow the instructions properly and then select Reset All Settings like I said, you'll be fine.