Simply put, when the condo host is far away from something that uses IO, the functions will typically not fire. This has been primarily observed across great distances such as when building in the art studio voidspace.
To reproduce, have the host go very far away. Tens of thousands of units away. And have a connected client try to operate something that uses IO, such as a mover.
You would expect the IO to be simulated globally across the entire condo, or at the very least, have players have their own “bubbles” that allow things to be simulated around them as well.