Yes, the whole world reset. This was the first time restarting after running for 2-3 days. I've tried replicating after the recent update, and can't get the world to clear out. Looks like this isn't an issue anymore. Also, I do have this set to a cached drive.
Thanks for all your help!
Using the Valheim template, and following a server update, I restarted the container, and the world reset.
Anyone else experience this on container restart? Im at a loss for what happened. I do see a world db file that matches the world name I am using, but not sure if something else is occurring.