Yesterday Arkane clarified that Red Fall story/mission progress is tied to host and character progress carries over. And this is just one of the latest games that continue this trend. On other big one that does this is Far Cry. And honestly this is BS and needs to stop. If you are making drop in/drop out coop game in year 2022 then story/mission progress needs to carry over. Look at the Saints Row, you can play any mission with a friend and if your friend is far ahead of you and you finish late game mission with your friend, when you reach that point on your save you can skip mission or replay it because it will be marked as finished.
By keeping progress tied to host in most cases you actually make people not want play it in coop.
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