If the server host's device falls asleep, the quests disconnect, but are in the same world, just the host is not there and anything they do does not show up in the host's game and vice versa.
Hosts have to be very careful not to let their device sleep or else the guests lose their items.
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Is this still a concern in the current Minecraft version? If so, please update the affected versions in order to best aid Mojang ensuring bugs are still valid in the latest releases/pre-releases.
Yes I did notice people get disconnected when devices fall asleep. I've worked around until is confirmed or resolved by adjusting the general settings in ios to never autolock. Not sure other devices have that option though.