I’ve been doing IT work for many years, with literally thousands of incidents of working on various Windows XP configuration problems, and I have never, and I mean NEVER, seen the “Last Known Good Configuration” option fix ANYTHING.
LKGF has worked for me on several occasions, but not always.
For example, I once got a blue screen of death upon booting into normal mode. And it happened every single time I tried booting normally.
So I shut it down, tapped F8 to get to the options and then chose “Last Known Good Figuration” and it actually booted normally into Windows and no more problems after that.
Amen - but someone at Microsoft thought it sounded good!
It’s usually like using glue to clean up chewing gum - you end up with twice the mess.