I'm using the wifi module and framing the shot with the app on my iPhone. Once I'm happy with the frame I start recording and close the app. I've found that if close the app, the Osmo Pocket will stop recording soon after. Is this normal behaviour?

What do you mean by soon after?   I am testing now.. started a recording using my phone.. closed the app and disconnected my phone from the osmo's wifi.. it has been a couple of minutes and the osmo is still recording as far as I can tell.. the counter is running and the red light is blinking.  

Ok... I let it go... it produced one 15 1/2 minute clip.. then went onto produce a 9 1/2 minute clip before it stopped.. (might have filled up my memory card at that point).

It produced a 7 min clip for me, the card still had over 100G free space on it... Bug?

Just reporting back, I haven’t been able to recreate the issue. Might be a bug prior to the latest firmware update. All is good