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Originally Posted by mithrazor
No separate wipe is necessary. While loading your OS, the Loader desktop utility will backup, wipe, and restore your device.
Originally Posted by jpaulo604
I would recommend doing your own separate complete wipe only if you're coming from some severe / fatal errors.
In that case, use a 3rd party desktop app like BBHTool, BBSAK, or BBMCP to wipe your device down to an Error 507 state, then proceed.
Please note that you will have to make a separate backup of your 3rd party apps using one of these desktop apps first as well, unless you're okay with just downloading all your apps again.
While loading the OS, Loader backups & restores apps. However a manual backup with DM includes your personal data & settings, not your apps.