Windows 10 reinstall "Reset" operation fails with errors

I need to revert my windows 10 install to clean version.

I attempt to do this by going to "Update & Security" -> "Recovery" -> "Reset this PC".

I choose option to remove all applications and data. PC restarts and then boots windows as normal, and when I sign in, I get an error message:

Alternative will have to be booting from dvd/usb and doing manual overwrite installation, but I want to figure out why this is not working.

I was able to find 2 errors in log log file C:\$SysReset\Logs\setuperr.log:

Error 0x80070002 in PushButtonReset::RegKey::HasValue(base\reset\util\src\registry.cpp:187): Failed to load subkey at [Microsoft\Windows\Signature][gle=0x00000002]

Error Factory: No recovery image registered[gle=0x000000ea]