(Forked from MCPE-188816)
Server version is Linux bedrock server 1.21.50.
Every time the server is restarted keepinventory is set to false, regardless of difficulty setting. I tried it on both normal (which is the bug behavior my children observed) and I also tried setting it to Easy based on the release note which stated:
Players will keep their inventory after dying on Easy and Peaceful as we're testing ways to adapt our difficulty levels.
It would make some sense that the new keepinventory logic checks difficulty and sets state based on that at server start, but that seems to not be the case - otherwise, starting the server in Easy mode would set it to true. Further, even if you set it to true while in Easy mode, it still resets to false on server restart.
Looks like this had already been reported previously, see BDS-19921