In poking around in MR2 on my test VM I realized there is no way to factory reset. Also while poking around I noticed that some of my pattern updates are showing as failed which is one of the reasons for performing a factory reset to start with a clean slate.
On a side note I have another XG (software install) where the factory reset is available and all pattern updates are good. The only difference is that the VM went from 16.x through the 17 beta, GA, MR1, MR2 where as the other system only followed the available releases as they were released to the general public.
A real head scratcher. :)
TIA
-Ron
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