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It also removes your encrypted backup password. This won't affect your user data or passwords, but it will reset settings like display brightness, Home screen layout, and wallpaper. Follow the steps to reset your settings.Tap Reset All Settings and enter your iOS passcode.On your iOS device, go to Settings > General > Reset.With iOS 11 or later, you can make a new encrypted backup of your device by resetting the password. You can’t restore an encrypted backup without its password. If you can’t remember the password for your encrypted backup
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See the following from About encrypted backups in iTunes - Apple Support There is no way to recover your information or turn off Encrypt Backup if you lose or forget the password.
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