The underlaying getaddrinfo() at least on Windows, will return all local network adapter addresses and LabVIEW will pick the first one from that list to use. So it binds to the actual default IP address of your machine. When you disconnect the cable this IP address (and adapter) gets invalid and your connection is working through an unconnected socket, which of course gives errors.
When the cable is not connected at the time the address is resolved and the socket is bound, the first adapter returned will be a different one, it could be the loopback interface or your WIFI interface. So connecting the cable and disconnecting it does not have any influence on this connection.
Using 127.0.0.1 or localhost explicitedly will bind to the loopback adapter and that one is valid for as long as Winsock is working, aka. until you shutdown your computer.