What name, format, and scheme should be chosen in order to "factory reset" a MacBook Pro?
If you're intending to reinstall macOS on the disk at some point (which 99% of people would be), then use these:
Name

Enter a name for the disk: 'Macintosh HD' is the default on a new Mac

Format

use APFS for formatting, and

Scheme

GUID Partition Map for scheme

Notes
This source recommends using 'Mac OS Extended (Journaled)' format. BUT if you want to be able to reinstall macOS (who doesn't?), then you must reformat to APFS, otherwise you'll get a message like

This Mac can only install macOS on APFS-formatted drives. Please use Disk Utility to reformat as APFS