The scratchpad is always first — it’s where the app opens and where everything you type goes unless you choose otherwise.
Signing out forgets the passphrase and clears the local copy. The notes themselves are untouched. All devices does the same everywhere else too — each one asks for the passphrase again the next time it is online. The passphrase does not change, so anyone who knows it can sign back in.
Snapshots are taken automatically every couple of minutes while the note is changing.
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Restoring replaces the current text on every device. You can undo it with Ctrl‑Z, or restore a newer snapshot.