I know that both of them wipe data and revert the device settings as they were - - but let's say I notice a bug on the device.
Should I pursue a hard reset it factory reset? What are the key differences?
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The two terms factory and hard reset are associated with settings. A factory reset relates to the rebooting of the entire system, while hard resets relates to the resetting of any hardware in the system.
Factory Reset: Factory resets are generally done to remove the data entirely from a device, the device is to be started again and requires the need of re installation of the software. The factory reset makes the device function again in a new form. It cleans the entire system of the device. It is probably done at the time of updating to a new version of the device's software.
Hard Reset: When a device does not function properly, it means the setting in the device needs to be changed, so only that part of the device is reset, or rebooted in the hard reset. It clears all the memory associated with the hardware and updates the hardware with the latest updated version. After the hard reset, the CPU or the processor restarts the application.
For your case I would recommend a hard reset since a bug is most commonly not a system-wide issue. If you want to upgrade your firmware or remove several problems along with the bug however, then a factory reset might suit you better.
You can find out more in these webpages:
Hard-reset does not wipe data. It is a forceful way of restarting the device.
To put it simply, Factory-reset, is to restore the device to the state it was in when you got the new device (excepting the upgrades) and is a sledge hammer approach, while hard-reset is restarting device to get rid of minor irritants . Which approach you want to take depends on the "bug" you have and how severe it is. Look up the tag wiki information and questions to help you decide what you need to do to fix your bug
Key differences below:
A hard reset is traditionally when you kill all power to the phone and then boot it up from that state. Normally you remove the battery, then put it back in and boot up. Unfortunately, some people use "hard reset" when they really mean factory-reset.
A factory reset results in a full reset of an Android device to the original settings of the currently-installed ROM. This process deletes all user data and user installed apps, so the device looks like it came fresh out of the box. Usually this corresponds to the state it comes in from the factory (hence the name "factory reset"), which sometimes can be a little misleading: A factory reset will not roll back any possibly applied updates to the system.