[@Saltwater Thief] That would be on an individual basis.  While fighting in a magical form one is attuned to the monsters but if one is killed by the monster, the trauma of being forced to [i]de-synchronize[/i] by way of death results in the memory loss and power loss that stays even after the monster is defeated.  As long as someone manages to stay alive, even just barely, once the monster is defeated almost all damage will be instantly reset and of course memories remain intact.  As long a TPK never happens, there is a slight possibility of being able to [i]re-connect[/i] but who would want to when they can live a normal life in ignorant bliss?