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Where I am, default decisions are common -- parents don't show at what we call the "TPR Advisory" and boom, they're defaulted (with 30 days to appeal and assuming that the notices were hand-delivered (similar process as with a subpoena).
Default decisions when someone is in jail? Rare. Unless the parent "refused transport" to the courthouse, parents in jail are present at all hearings.
My guess would be that the decision will depend on why the parents weren't present -- was it the fault of the delivery system (for the notice), the response system, the transportation system, some other part of the vast system, or the parents? So many variables -- if the breakdown was anywhere other than the parents (regardless of where they are on their case plan), I'd expect the decision to be vacated.
Of course, that's based on how things are handled here and without knowing all the gritty details of your case. ;)