What I'm referring to is actually rebuilding your wallet from the seed phrase/passphrase.

Before I use any wallet I record the seed phrase and passphrase (separate) into a steel plate(2 copys, one local, one different location), send a small amount of SATs to the new wallet, then restore the device to factory settings.

I then restore the wallet using my seed phrase and passphrase. If I can see my funds in my restored wallet, I consider it verified, then move ahead and add the desired funds to that wallet.

I am not concerned with software backups so I don't really keep a sha 256 hash of my wallet files. I store them in a hidden file, within a full disk encrypted ssd complete with distress passwords for unlock combined with hard tokens.

That is for a 1 seed signer setup.

For multi factor....

Similar, but you need to record the seed phrase/passphrase AND all the xpub for all your wallets used in the multisig. Store a copy of all the xpubs with each seed phrase. If you skip the pub key step, you will lose all your funds when trying to store the backup. Its a common mistake because people are used to 1 hardware wallet backups.

Same idea.

Write it all down. Generate your new wallet. Send a small amount of SATs to it.

Delete wallet, backup.

Build from scratch. Using the recorded seed phrases and xpubs.

If you can access your funds, backup verified.

If you are doing multisig, geo separate the signers.

Be sure to think about all the bad things that can happen.

Some 1 recently lost 7 bitcoins by not writing down their xpubs.....

No it was not me :p