On the Solo, the companion computer is managing the RTM and RTH, and executes it using Guided Mode when the signal is lost. The Solo App or Solex App are changing the setting on the companion computer.
If you have the Solo set for RTM, the companion computer is uses your Solo App / Solex App reported device location and navigates there using Guided Mode. If you have the Solo set for RTH, the companion computer uses the Pixhawk's reported home location and navigates there using Guided Mode.
If you are using Tower's RTM function, that is totally different. That existed long before the solo and companion computers. There is no RTM function on the Pixhawk at all, so the app function does it for you by cheating. That function of Tower is constantly updating the home location on the Pixhawk to match the device location. So when you lose signal, the home location on the Pixhawk is your last reported device position. In order for the Solo to make use of that location, the companion computer needs to be in RTH mode so it grabs that cheated home location from the Pixhawk. If you have the Solo's companion computer set for RTM, it will have nothing to use since neither the Solo App nor Solex are running to feed it the information it's looking for. Or worse, it will use really old location data from the last time you used it. I have no idea what the Solo will do when it can't find a device location from it's app. Maybe it will revert to RTH? Or maybe it will fly home to China?