What happens with location when phone looses internet for extensive time

I have been trying to google and searched this forum but no hints.

What happens to location and home/not home status when phone is broken / switched off / at other country and roaming disabled for longer time?

Will phone (and person) just stay in last sent location for ever or after some timeout change to unknown/not availabe (and what does that mean with at home/away status?)

If HA restarts and all device trackers linked to a person are unknown or unavailable the person entity will be unknown.

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Why would HA restart? Case was location not updated in days or months for phone and app not connecting (because phone died/camping in wilderness/etc)

Presuming you had access to Home Assistant on a computer, you would just unlink that device from the person.

Why should I delete my phone if i go for vacation with no internet for example?

I just want to know what happens on case not covered in documentation I have found so far, not fix anything per se.
Though I think there should be some timeout for location and could consider it a bug if it forever just stays at last update.

Yup, that’s what it does, stay at the last update forever, which is exactly what should happen. You might not even have internet access when you are on vacation - so you want your house to start behaving like you are at home which you are on vacation for longer than the hypothetical timeout?

Mostly I am actually concerned will I remain indefinitely “at home” and house acting like I am, when I actually left but phone not able to send update for whatever reason.

Need to investigate if I can force away if no update in 12h or something.

Yup, pretty easy to do.
Create an automation that triggers if the state is home for X hours.
Ideally you would also want a network based tracker too, whether via the access point, a router or even just ping.
You’d confirm the state of this sensor is not_home (Away in the GUI).
Then you would have an action that executes the device_tracker.see service with a latitude and longitude far away from home so that it marks you as not_home (Away in the GUI)