etcupdate: Restore /etc from backup and merge into a new installation

Having read etcupdate(8) and looked at the source in /usr/sbin/etcupdate makes me asking for help. Confusion is about a bunch of named directories and being unsure what to use as I fail to succeed.

The task is restoring /etc from backup and merge it with the untouched new /etc in a fresh installation done from scratch with /usr/scr not installed.

Is it better to restore into /etc.old or direct to /etc?
And what is the exact workflow of commands then with etcupdate?
 
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