Is it normal for host licenses to be disassociated when connectivity is lost?

Could you clarify what you mean by "whose connecting user IDs' passwords have expired"?

Apologies, I did not ask the question clearly:

vOPS connects to VMware vCenters using administrator UIDs and passwords which have to be configured in vOPS.  

If those passwords expire, the hosts managed by the (now disconnected) vCenters are removed from the socket licenses used list in Settings-Licenses.  This removal seems to be immediate, without a grace period.

Is this the normal, per design, behaviour?

If we lose connection to vCenter, there's no data being collected on the hosts, or their VMs, therefore we can't assign licensing to those hosts since we don't even know if they exist anymore within the infrastructure.

While I hesitate to say this is by design, it makes sense given the circumstances; especially since expiring passwords should never be used on an account used for inter-service connectivity. 

vOPS is designed to collect data continuously, so we wouldn't support circumstances where it periodically loses connectivity due to a user account being utilized in place of a service account.