Why does this script get to linger after having seemingly exited from Ctrl-C?

Question

I have a script, script-A, which runs script-B. When run under the terminal, it terminates as expected from Ctrl-C, but when run via ssh it continues to silently run after Ctrl-C even though ssh disconnects as usual.

~/bin/script-A.sh:

#!/usr/bin/env bash
This script will create 15 empty files in your ~/log dir.
If you run it via ssh localhost ~/bin/script-A.sh,
it will keep doing so even after having seemingly exited!
for i in $(seq 1 15); do
  touch ~/log/$(date '+%Y-%m-%d--%H-%M-%S')__still_here.log
  timeout --foreground 1000 ~/bin/script-B.sh
echo 'here' # if uncommented, this kills the script!!
done

~/bin/script-B.sh:

#!/usr/bin/env bash
This script allows script-A.sh to keep running after Ctrl-C!
function retry {
  ${@}
  echo "here" # this is needed to repro the behavior!!
}
retry timeout 1 sleep 1000

I can reproduce this behavior on both Linux and macOS, so it seems to be intended behavior. But what precise mechanism could be causing it?