It can in many circumstances. I live rural and we don't have a land line. It's hard to get the kids over to their friends as much as they want. My solution is to talk to the other parents. We all agreed to no tik too. I turn our wifi off after bed time. We have a phone contract with our 14 year old that stipulates the usual be nice and don't live on your phone rules.
They swim, ski, kayak and play school volleyball and badminton so there's lots of opportunities for that sort of interacting but I think it would be pretty harsh to cut them off of their phones. If I could get 3/4 of their friends parents to agree I would for sure until they are 16.
social isolation isn't a yes/no question it's a gradient
and in many situation it is pretty much guaranteed to at least cause slight degree of social isolation, in some (like very rual) it might cause a large degree of social isolation
similar having a phone isn't a yes/no question, things like parent control exist, even through they often slightly suck
