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Official servers don't wipe, ever. Not since May 8th, 2018, and Funcom has been on record multiple times that they will not be wiping official servers. If people are abusing and Funcom takes action, their stuff is either remove via admin action or left to decay until it goes away. But the entire server does not get wiped.
There is also no official server that wipes every few weeks. There was one such type in very (very) early access days, but wasn't popular and was phased out.
As for Private Servers owners, as multiple people have already stated, it's up to the server owner(s). Decay can be toggled on or off, as well as clearing out the game.db for a new start.
One of the problems is Thralls are freaking tied to NPC damage, and i think HP as well. To increase the difficulty of the game is to get carried by your Thrall whom is a freaking tank and likely hitting ... well for a challenge at least x2 harder then you. You don't have to use thralls tho, but some mobs like those giant rocknose from purges are 1000% BULLCRAP and should have been fixed or disabled until fixed (depending on difficulty settings).
This is why i hate playing these games with random strangers. someone is always duping items/hiding under mesh so they dont take damage in pvp etc. First experienced in in Ark. Then any other online game out there now has people doing this.
Wow, this thread is full of so much information. To wipe or not is not a server setting you turn off or on. It is a button you press typically. Might be called reinstall, clean, something like that.
This is used when a server gets messed up beyond repair, or maybe on a private server when the owner is just too lazy to clean off all the mess players have made or they just want a fresh start. It could also happen when they stop paying the rent or quit playing the game. That is a wipe where the server never comes back online.
It is all up to the server admin, although there are rare situations when it must be done to make the server operational again.