There's a crucial difference between Reset and Restore. It sounds as though your iPod needs a Restore and that a simple Reset will not work, so you need to ensure that you have tried the Restore function, not just a reset.. Check this article from Apple; If your iPhone, iPad, or iPod touch won't turn on or is frozen - Apple Support which should help. Read past the bits about iPhone X, 8 and 7 but read and refer to anything that mentions the iPod Touch.
In particular, check the section headed If your device turns on but gets stuck during start up which deals with an iPod stuck at the point yours is.
Before it directs you back here, there is another section headed If you need more help. Somehow it should be possible to get your iPod going again.