This example doesn't resemble anything someone would actually write though.
There's no reason to reset before setting data again, and I'm not sure why you'd even consider putting the functions in the dependency array for the useEffect in usePets.
I can imagine reasons you'd want to setData in a useEffect (maybe when something else changes, or the user performs some interaction, you fetch new data and then set it), but the dependency would be the thing that indicates that action has happened, and not a reset function returned by a custom hook coupled with your data and setter function.
There's no reason to reset before setting data again, and I'm not sure why you'd even consider putting the functions in the dependency array for the useEffect in usePets.
I can imagine reasons you'd want to setData in a useEffect (maybe when something else changes, or the user performs some interaction, you fetch new data and then set it), but the dependency would be the thing that indicates that action has happened, and not a reset function returned by a custom hook coupled with your data and setter function.