If I reset the memory unit on my Xbox 360 E with that factory reset the entire system?

Hello, Logangang. I'm Arturo, and I'll be glad to provide assistance with your inquiry today.

No, resetting the memory unit on your Xbox 360 E will not reset the entire system. It will only erase all data stored on the memory unit.
Data stored on other drives is not going to be removed.

Make sure to back up or transfer important data you have stored on the memory unit before resetting it.

Reference link:

https://support.xbox.com/help/xbox-360/console/how-to-reset-or-reformat-console

I hope you find this answer helpful to your inquiry. However, I'll remain attentive to any other one you may have.

Thanks for your time,

Arturo.

Digos X,

You can reset the parental controls by doing the following:

Turn off your 360 Unit

Remove all memory devices

restart 360 Unit

go to system blade > Console Settings > System Info

press

left trigger, right trigger, x, y, left bumper, right bumper, up, left bumper, left bumper, x.

This should bring up a menu

Reset System Settings

Resetting your system settings

will return all console settings to

factory defaults. Do you want to

reset to factory defaults?

Yes, reset settings

No, don't reset settings

select to reset settings

your screen should go blank for about 2 seconds

then the language blade should appear that lists several different languages,

select your preferred language

then a blade that says "Xbox 360 Storage Device" should appear

With the options of:

Done

Continue without one

select to Continue without a profile

Then an Initial Setup Complete screen should appear

with the options of:

Family Settings

High Definition Settings

Xbox Dashboard

select Xbox Dashboard

Now turn the system off, insert the Memory Unit or Hard Drive, and turn the system back on.

No more Parental Control lock.

You can reset the parental controls by doing the following:

Turn off your 360 Unit

Remove all memory devices

restart 360 Unit

go to system > Console Settings > System Info from there continue to the parental lockout option

Input the following when prompted for the password. X, Y, Left Trigger, X. This will bypass the parental lockout function!

This should bring up a menu

Reset System Settings

Resetting your system settings

will return all console settings to

factory defaults. Do you want to

reset to factory defaults?

Yes, reset settings

No, don't reset settings

select to reset settings

your screen should go blank for about 2 seconds

then the language option should appear that lists several different languages,

select your preferred language

then a menu that says "Xbox 360 Storage Device" should appear

With the options of:

Done

Continue without one

select to Continue without a profile

Then an Initial Setup Complete screen should appear

with the options of:

Family Settings

High Definition Settings

Xbox Dashboard

select Xbox Dashboard

Now turn the system off, insert the Memory Unit or Hard Drive, and turn the system back on.

No more Parental Control lock.

In order to change your parental profile to teen, try these steps: If they don't work try to contact xbox support!

You can reset the parental controls by doing the following:

Turn off your 360 Unit

Remove all memory devices

restart 360 Unit

go to system blade > Console Settings > System Info

press

left trigger, right trigger, x, y, left bumper, right bumper, up, left bumper, left bumper, x.

This should bring up a menu

Reset System Settings

Resetting your system settings

will return all console settings to

factory defaults. Do you want to

reset to factory defaults?

Yes, reset settings

No, don't reset settings

select to reset settings

your screen should go blank for about 2 seconds

then the language blade should appear that lists several different languages,

select your preferred language

then a blade that says "Xbox 360 Storage Device" should appear

With the options of:

Done

Continue without one

select to Continue without a profile

Then an Initial Setup Complete screen should appear

with the options of:

Family Settings

High Definition Settings

Xbox Dashboard

select Xbox Dashboard

Now turn the system off, insert the Memory Unit or Hard Drive, and turn the system back on.

No more Parental Control lock.

This could be a glitch since you have mentioned that there is nothing in the memory unit which is why a reset could help resolve the issue. Please follow the steps mentioned here => How to reset or reformat your Xbox 360 to factory default settings | Xbox Support.