So I logged in to the dedicated server and I was Level 1 again. I am disappointed that I lost 4 skill points due to the reset since they are a quest reward and quests didn't get reset which kinda seems like a bug. Anyone of you had the same "experience"?
Update:
Found an old post in the steam forums ... give your players admin, let them give them the starter quest then you have the 4 points again.
givequest quest_BasicSurvival8