Yes, this feature has been tested. Here is how it’s tested: OG is connected to our WiFi router in station mode, then we unplug the router, wait for a while (we’ve tested gap of both less than a minute, and much longer, like 10 minutes), then the router is powered back, and OG is able to reconnect to the router afterwards, without having to manually reboot it.
Where did you see the condition of “if(WiFi.status() == WL_CONNECTED && WiFi.localIP())” — that is not the condition it’s testing in station mode. The only place I can think of that checks that condition is when the controller is in AP mode itself, which is not the mode you are referring to.