I dug into it a few months ago when I started that plugin. They are still being networked and the client is aware of them, but it simply culls rendering of them. For example, switches will still show prompts even though they are not rendered.
They become invisible when the client moves a sufficient distance from the location the client cached for the entity's origin, which it caches when creating the entity. The distance is a bit inconsistent, as well as the rendering which may only cull parts of the entity. Additionally, moving the entity or client back does not seem to always restore rendering.
There's an additional bug with parenting where if an entity is created on the client while it is parented, the client does not take into account the parenting when determining the spawn origin so it assumes the networked position (which is actually local position) is the world position. This is why spawning entities like switches while parented to turrets will often render them invisible unless you are near the map origin, since the local position is so low that its somewhere near 0,0,0.
The workaround for the parenting issue, where you parent after spawn, only works for clients who observe the initial spawn and remain in the network group. My plugin aims to address this by ensuring the first time a parented entity is networked to a particular client, that its networked as unparented and then networked as parented immediately after. It keeps track of when players change network groups to reapply this mitigation the next time the same client subscribes to the entity.