It's still here, with a clearer name. It's now called Importance, found in your Wyze Stories settings under "Notify me for," with two options:
High Important Events (default): you're notified about the activity that matters and not about repetitive, unremarkable activity. Everything is still recorded and available in your Events tab.
All Notifications: you're notified about every event.
Nothing is deleted either way. Filtering changes what you're notified about, not what's saved.