This same thing happened to me last night. I was going to make a new thread about it, but searched the forum first and sure enough, I came across this thread, looks like an issue others are also seeing.
While I was driving home last night, I got the "New settings detected" message on the infotainment screen. The message also warned that the seat settings may be reset, I don't remember the exact wording since I was concentrating on driving. Anyway, I accepted the update, and the message indicator area of the screen spun for about a minute, then displayed a message that the update was successful. Immediately after, the ambient lights reverted to the default blue lights. I don't think the seat moved, or at least I could not perceive a change in position. When I arrived home and put the car in park, the seat automatically scooted back, so I knew the convenience entry (or whatever it's called) setting had been reactivated. I went into the settings and disabled that and also re-setup the ambient lights the way I like them. I checked the software version, but it was still reporting 3.1.0. I checked a few of the other settings to see if anything else got reset, but didn't find any other changes, and didn't find any new settings/features either. Does anyone know what the new settings update is all about? It doesn't seem to be a real update, but is this how a real OTA update would work if one were ever released? It was surprising to me the request to update popped up while I was driving. I would think it would be better to wait until a car is parked before asking the user to apply any software updates.
I have owned my ID.4 for approximately two months, this is the first time I've encountered this. Per the various responses here, some are seeing it more frequently than others. I hope this is the last time it happens. It will be really annoying if it ends up occurring often.