Yeah, that’s in part due to the way AD works. The Reset- cmdlet tells the computer, which knows its current password, to reset its password. So, no, won’t work if you no longer have the computer.
Microsoft would tell you that you’re meant to delete the computer account and then add a new account for the new computer, even if it’s the same name. You’re not really supposed to “recycle” accounts the way you’re doing, which is why I suspect you’re not seeing a cmdlet to do it. I’ve actually not run across an organization that does what you’re describing - it’s actually something I’d worry about, for stability reasons, since you’re obviously getting a re-used SID in there.
Thinking it through, there are potential security issues with what you’re doing. Not necessarily in your specific environment, but just in general. If I were Microsoft, I’d worry that putting a computer account into that “reset” state would allow an attacker to spoof the computer name and join the domain. You can’t really guarantee that it’s the real-for-real “SERVER5” that’s re-connecting to the domain, since by definition you’ve got no mutual authentication happening until afterwards. Again, in your environment I’m sure you guys control for that, but from a product perspective it’s something they’d likely worry about - which again makes it less likely they’ll try to enable the scenario by providing a cmdlet.
Anyway… I’m not personally aware of a cmdlet that exactly replicates the functionality you’re using in the GUI at present. Not saying one doesn’t exist - but I’ve not run across one.