The response got hidden, apologies for the late reply.
Wrt your question: WG tunnel doesn't handle the HTLC, but the node OS does this. The connection flow of - let's take LND as it's well documented and I'm familiar from prod experience - is that while the HTLC is inflight and the tunnel drops, two things happen:
our killswitch kicks in, handled by nftables, avoiding that any LN packet leaves your node via clearnet (your home-IP). So at no point in time, an exposure of your home-IP is possible
your Tor connection stays in-tact. So LND will try to reconnect to your channel-partners, in the sequence of IPv4 (killswitch => no), Tor (slow, but once established ==> Ack), and if available IPv6
So if all 3 are a no, your HTLC will fail after expiration time is hit (if incoming = critical). If one of them is yes, your HTLC will not fail, but close on the connection which is available to be established.
The response got hidden, apologies for the late reply.
Wrt your question: WG tunnel doesn't handle the HTLC, but the node OS does this. The connection flow of - let's take LND as it's well documented and I'm familiar from prod experience - is that while the HTLC is inflight and the tunnel drops, two things happen:
So if all 3 are a no, your HTLC will fail after expiration time is hit (if incoming = critical). If one of them is yes, your HTLC will not fail, but close on the connection which is available to be established.
Does this answer your question?