Bangle.js 2 cannot system reset.

Glad you got it sorted! For later, the issue is that you've overwritten the JS that runs write at the start - as https://www.espruino.com/Bangle.js+Development says:

If you've used Espruino before, make sure the Upload button (middle of the screen) shows RAM underneath it. Otherwise by writing to Flash you can remove the watch's built-in menu (you can just re-add it by removing and installing bootloader using https://banglejs.com/apps)

So all you needed to do to fix it was to go to the Bangle.js App Loader, and uninstall then reinstall the bootloader - which you can do even when the watch is showing the Bangle.js logo like you saw in https://imgur.com/HeW3y8v

There's no need to update the Bangle.js firmware

In future, all you need to do when uploading to the Bangle is to set it either to RAM or to click the Storage button and choose a filename. It might be worth checking on https://www.espruino.com/Bangle.js+First+App for more info