Haven't found a way to change a contact from Google to Phone and vice versa. Just had to recreate them and choose the right option. If you've got a lot of them to fix, it would probably be easier to put them in your Gmail account on a computer instead of entering them in the phone. Next sync, your phone would then have them.
You are correct, if the Contact is a Google Contact, it will automatically sync when you enter your account info after a reset. I'd just double-check and make sure all the Contacts you want are in your Gmail account before doing the reset.
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