MacBook Personal Hotspot doesn't automatically disconnect

“Personal Hotspot doesn't automatically disconnect: personal hotspot is set to automatically connect on my MacBook but I can’t help but wonder if it’s was designed to automatically disconnect when my laptop is closed cause it doesn’t”

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What is the Chip?

1. Click: Apple menu
2. Select: About this Mac
3. View: the chip

On a Silicon Mac, this is expected behavior. So, the best way to avoid this is to turn off WiFi on your iPhone. The fastest way, other than doing so directly in Settings, is to use Control Center.

Turning Off WiFi, Quickly;

1. Swipe: down from top-right corner of screen
2. Tap: WiFi icon

Screenshot:

“using an M3 chip, I fail to see how turning off wifi would help, I'll apply it regardless and would still appreciate further input on this”

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About my Reply:

I’m inferring about your second half, and that’s where I should have only quoted you on:

“[…]I can’t help but wonder if it’s was designed to automatically disconnect when my laptop is closed cause it doesn’t”

Personal Hotspot Not Turning Off:

If you are using WiFi, then that’s how this applies. If using Ethernet, then it’s the Ethernet you would unplug. The connection is not going to turn off, when you just close the lid. If an iPhone plays no role in this, and only the Mac is, then turn off the WiFi, if you don’t want to use it.