I kind of notice the same thing, the reset button sometimes does not clear all config files when resetting to factory defaults. Is holding the wps+power on and reset button has the same effect as telnet's "mtd-erase -d nvram"? If not, can anyone explain what the mtd command does? TIA
mtd-erase actually wipe out the content of the nvram partition, so the first time the router gets booted, CFE will write a new set of default values.
I'm not sure how the WPS-based reset works since that code is inside the CFE.