What does the emergency distress sequence at the start of the game do?

Solution 1:

It's just flavour text at the start, similar to the diagnostic checks. The idea is to punch home the fact that you are utterly alone out there.

The y/n element is a trick used in game development, frequently referred to as the "Illusion of Choice". The player is presented with options and choices throughout the game that don't actually affect the outcome at all beyond some cosmetic changes. But by giving the player this chance to decide - this illusion of a choice - it increases their engagement with the game.

A game reset is not a restart of the game per-se, just a "reset" of your situation. You retain your objectives and the game difficulty continues at the same level. It's akin to a death-and-respawn event in another game.

Clearing user data is a true game restart, this is like actually starting a new game.