How to recover encrypted iCloud data after resetting iPhone passcode?

I forgot my passcode to my phone and had to reset it and I did! I used a backup to restore all my stuff but now I can’t sync encrypted data cause I still need my old passcode and I failed so it gave me this

so if I press delete iCloud data, it’ll only delete my encrypted data or will it delete all of my data? (I don’t wanna lose all my data 😔)

[Edited by Moderator]

Original Title: couldnt sync icloud data