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Have you selected 'Maximise Comparability' option? That's saved me from having the same issue.

I have, and the issue arises regardless of whether I enable that option. Do you know what the toggle does?

Not sure to be honest but I thought I would try it one day and since then it's stopped disconnecting.

"Maximize Compatibility" toggle puts hotspot to 2.4GHz Wi-Fi when enabled.

No idea why apple couldn't put this information there for people to know instead of being vague.

Where is this setting

Whose being vague? Cause I didn't know that so I certainly couldn't write that.

It's under personal hotspot on setting.

The iPhone itself is being vague. Not you!