Another recent engineer turned manager here. I can attest to losing touch, as I've had to work extra hard to see where things are trending in my spare time. If development wasn't also a personal hobby, this would be exceedingly difficult.
Fundamental shifts occur in development all the time, and if you're not actively coding while these are going on, you can definitely get left behind and be out of your element when it comes to decision making.
I have peers that cut their teeth on Enterprise Java and Oracle and now they are managing engineers doing Native Mobile, JavaScript Apps, Ruby on Rails, DevOps, Distributed Databases, and deploying on public clouds like AWS.
It's very easy for them to get lost in the jargon and they end up leaning on and trusting senior engineers to guide them a lot.
While this can be a good thing, it's very easy for the wrong senior engineer to lead them astray and start pushing their own agenda (rewrite all the things, resume driven development, etc).