This article explains how to reset your iPod Touch to factory settings and restore it from an iCloud or computer backup. Information applies to iPod Touch devices running iOS 12 and later.
When Apple removed iTunes from macOS Catalina, you might have thought you could connect your iPod to the Music app that iTunes replaced, but no. Instead, you use the Finder to back up and restore your iPod Touch:
Open the Finder by clicking its app in the Dock of your Mac.
Connect the iPod Touch to your Mac with a cable.