Is there any risk of confidential data appearing during a Windows laptop reset?

I need to provide a clear, definitive answer to a concern raised by non‑technical managers.

The environment is fully cloud‑based: Intune, Autopilot, OneDrive, SharePoint, M365, encrypted local copies, and users trained not to store local data.

Is there any real risk of confidential data(*) appearing on screen during the reconditioning of a laptop (re-imaging or AutoPilot reset) for device reassignment?

1. Have you ever seen sensitive information appear on screen during such operations?

2. Can a device reset cause data from the previous user to reappear?

I’m not asking about internal procedures — only whether, in such a cloud‑only scenario, a reset could display any previous user data on screen at any point during the process.

I’m turning to the community for two reasons:

1. My own explanation isn’t being given much weight.
2. I want to make sure I’m not overlooking any unusual situation.

(*) By “confidential data”, I mean user‑generated content such as documents, emails, cached files, or anything belonging to the previous user.