You can reset the compass on the Z1 using the figure 8 motion described on this thread.
You can reset the Wi-Fi by pressing and holding down the Wi-Fi button on the physical camera for longer than 8 seconds (might be a bit longer)
The stitching might be related to Adobe Camera RAW.
Also, see this thread:
Stitching Theta Z1 HDR Rendered Pictures
There is an API to reset the camera settings. However, it is not available in the official mobile app.
We can build a simple utility app with only a few features if it is useful for people.