"erase ubuntu and reinstall" is erase full disk and do a full disk
installation.

the label is a bit wrong if one happens to have a dual boot on that
particular drive (e.g. erase all OS on single drive and reinstall)

However it does says in BOLD RED Warning this will erase all your data,
applications and documents.

...

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https://bugs.launchpad.net/bugs/1265192

Title:
  Reinstallation wipes out all/other partitions

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