Microsoft is planning to introduce a new "Windows Backup" app to Windows 10. It is the same app that has been earlier announced for Windows 11, which now works on Release Preview versions of Windows 10. Though there are some limitations.
Windows Backup is a cloud-based application that makes a copy of your files, a list of apps, and also settings and credentials. After you reinstall windows, you can get your stuff back right in the OOBE, or later by using the Windows Backup app in the session.
Actually, the app itself doesn't offer any new features, as everything that it does exists in Windows in this or that form since Windows 10. But now it offers a convenient UI.
As mentioned above, the Windows Backup app creates a list of apps to restore them later when you set up a new system. But, unlike on Windows 11, this new Windows 10 version doesn't offer restoring the apps. Maybe Microsoft made this feature exclusive to Windows 11 in a try to make it more attractive for consumers.
Sadly, the Windows Backup app does not provide an interface for individually restoring items. It restoring everything by category, e.g. "Files". To get a specific document, you have to refer to your OneDrive cloud storage. There, you will find all the data Windows Backup stored for you.
The app is currently available in the latest Release Preview update of Windows 10. It should not take long for Microsoft to bring it to the stable version of the OS.
Many thanks to @PhantomOfEarth
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Totally complicated!