Sorry, I misread the original question #2 and didn’t answer your actual question. You can disregard my previous attempt at an answer, it’s just wrong .
Okay, let me try again .
Why is it better to choose the restore position when the encoder range is smaller than the movement range?
I assume you are referring to the section in the decision tree marked with the blue box below.
The reason to use the restore position is that it tracks encoder rollovers while power is on and can compensate for them when the power switches back on again. The restore position includes the limitation that you can’t move more than 50% of the full encoder rollover while the power is off but will be able to track the encoder rollovers, unlike Home_Absolute/Absolute_Correction.