That is the database reset and it will erase any Kodi addons previously installed.
It will erase any other data files saved.
It will initiate a clean user data base.
It will not erase or affect the onboard T1 software thou, like the android version onboard. Them will be unaffected.
under normal circumstances , nope.
If after a factory reset on the receiver and you still can connect to the server and are getting IPTV channels, then the reset did nothing that would stop the VOD from working.