If booting into the factory reset menu with <Volume up> and <Power on> fails, an alternative way is to switch partition slots via fastboot command.
First boot into the fastboot menu with <Volume down> and <Power on>: press first <Power down> and hold the key, the power on the device and hold the key, until the menu appears. Release both keys. The first screen should have the title fastboot.
In fast boot mode (even if the device is locked), you are able to use fastboot commands via USB (Android Command Line Tools or the Android SDK must be installed and the platform-tools folder must be in the path).
First you have to identify the active slot:
fastboot getvar current-slot
After the slot (a orb) is known, just switch to the opposite slot (if a is active, switch to b and vice-versa).
fastboot --set-active=a or b
Then reboot the system using:
fastboot reboot
After the reboot, you should be in the factory reset menu. Select the option to erase the data/cache partition. After approval and and a reboot, you should be able to setup the device from scratch.
Note: after a factory reset via boot menu, it is necessary to enter the last used Google account information (FRP protection). If the account information is lost, only the device vendor can reset the account information (separate partition) - a network connection is required - maybe this is a paid service or it is not possible at all (i.e. after the expiration of the warranty.