gk7ncklxlts99w1 to my understanding, the flash storage configuration would be more logical layer than hardware (physical) layer.
If a specific part of the flash becomes unreadable (this happens), then Android may be unable to read the data -- for example, it might suddenly become impossible to read the owner profile's home directory, in which case Android would likely crash and fail to restart. Hopefully it is clear how this physical failure could result in operational issues similar to the reported symptoms.
If the device is factory reset, every block of the user data partition will be rewritten (some immediately, some over time). In general the flash translation layer will store every part of the new version of the user data partition in a different part of the flash than it was stored in before. Thus the owner profile's home directory is unlikely to be stored in the bad part of the flash that it had been stored in before. And it is very plausible that the FTL will store nothing in that part of the flash ever again, if the read failure had previously caused that part of the flash to be marked bad.
None of this is controversial. This pattern also applies to spinning-rust disks, which also do overprovisioning and bad-block replacement. In both cases an unreadable logical block can be "fixed" by rewriting it, causing a reallocation. "Formatting" a partition rewrites all of the blocks, thus reallocating all of the bad blocks.
It is absolutely plausible that a file system that is "broken" due to a physical failure can be "fixed" by resetting it at the filesystem layer.