The system restarts into the newly installed copy of Windows.
The $SysReset folder on the system drive is one such location where the reset feature stores the files.
Selecting the Keep my files (previously, this feature was known as “Refresh your PC”) will do the following: After you enter the Recovery Options, on the Choose an option screen, select Troubleshoot → Reset this PC, and then choose one of the options. If Windows 10 doesn’t start, you can access the Reset this PC option by booting into the Windows Recovery Environment using the Windows 10 USB setup disk or DVD.