How does the text reconcile the 'loss' of Sai's physical form with the ongoing attainment of spiritual benefits like liberation from fear?

Chapter 45 reconciles this by distinguishing between the physical and the eternal. It first acknowledges the deep sense of loss, stating that the 'Sai-form, by which the fear of worldly existence vanishes... is now lost.' However, it immediately provides a deeper understanding. As Chapter 45 explains, the passing was only of the body, as Sai is beyond birth and death and remains in the Unmanifest. The spiritual benefit is ongoing because He established His form in devotees' hearts through meditation. Moreover, His 'literary form,' the Satcharitra, now provides constant remembrance and brings peace, ensuring that His power to grant liberation from fear and illusion continues unabated for those who engage with His stories.