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It appears this is the correct answer. When assigning units in a lot that you own, the game "kicks" you out of the unit, and this means that despite your sim being present, the lot is no longer active, and everything inside the unit is culled out and turns invisible, including the sim if they are currently inside the lot you turned into a unit. This is a very confusing way to have this system work, but at least I know now why everything just disappears. Also a shame I can't see the furnishings I spent a lot of time placing in a lot that is mine, but I suppose this is the way it has to work code-wise.