I have a Gen 1 and a Gen 3. I had no Gen 1 issues on a Large frame bike but I loaned it to a friend who had once or twice a ride drop out issues on his XXL frame.
I seem to remember GP Llama doing a test on the (then) new Gen 3 with his Garmin mounted to the end of a painters pole so like 10 ft. in front of him with no issues.
I have no issues with drop outs due to distance on my gen 3, nor does the friend who now has his own Gen 3 on the same XXL bike and gets no issues. Contrary to what others have said, I’m pretty sure one one of the gen 3 upgrades was better signal strength over previous versions.
I have run into drop outs during high-end sprint efforts which is frustrating for a power meter that’s supposed to go to 5000 watts or something ridiculous like that but not as concerning as regular riding dropouts.