According to a MacRumours report, all documents stored by users within iCloud Drive are apparently erased when users select the 'Reset all Settings' option from under the General > Reset Menu.
The Apple iOS 8 mobile operating system was released on 17 September immediately reports came in of various issues, such as rapid battery drain and lagging Wi-Fi connectivity. This latest issue could cause panic among iOS 8 users, as reported by various users on the Macrumours iOS 8 forum.
Users have described all their data getting wiped out permanently. This is quite contrary to the normal functioning of the 'Reset all Settings' functionality which should normally only see user's preferences and settings (selected within their devices) being restored to factory settings, without affecting document files and media storage.
Users wanting to wipe out all their stored work/documents for good have the option of selecting "erase all content and settings" which does a clean-up of their iPhones.
MacRumours has also reported to have done a test of the 'Reset Issue', and has found that selecting the 'Reset all Settings' option does indeed delete iPhone users' iWork documents within iCloud.
As of now, we are unaware about options that users can pursue to recover their 'erased' documents from within iCloud. iOS 8 users are advised to stay away from using the 'Reset all Settings' option within their devices.
If you have a fix for the above issue, do let us know in our comments section below.