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Running "Erase All Contents and Settings" on a Mac is primarily done to prepare the Mac for a new user. This process ensures that all personal data, applications, and settings are removed from the device, providing a clean slate for the next owner. This is particularly important for privacy and security reasons, as it guarantees that none of the previous user’s information remains accessible.

When this option is chosen, the Mac is reset to its original factory settings, which includes removing user accounts and reinstalling macOS if necessary. This is especially useful when selling or giving away a Mac, as it not only prepares the machine for new use but also helps in maintaining the previous owner's privacy.

Other reasons mentioned, such as troubleshooting hardware issues or increasing system performance, do not specifically require the complete erasure of data and are better addressed through different methods, such as diagnostics or system maintenance rather than a full reset. Running a major macOS upgrade generally doesn't necessitate erasing content, as software upgrades can typically be performed without impacting user data directly.