Answer
Deleting the parent Application can delete its children (and their resources) if finalizers/prune are set for cascading deletion. The resources-finalizer on an Application causes ArgoCD to delete the app's managed resources when the app is removed. Understanding this prevents accidental teardown of whole environments.
metadata:
finalizers:
- resources-finalizer.argocd.argoproj.ioReal-world example Removing the root app with the resources finalizer tears down every child app and its workloads—useful for env teardown, dangerous by accident.