I did my research and found that tons of other users using EMUI 9.0 or above are facing this and it is happening due to Memory Management. I found and tried all the alternative solutions like lowering the screen resolution, changing the "App Launch" settings to Manual in the battery options, disabling the apps from the "Battery Optimization" settings from the Special Access menu etc. but none of it works. Some have also mentioned to Disable or Uninstall the stock launcher to get back to the Oreo style Recent App card list as a solution. But I am scared to do that, as it can affect the future updates for sure.
It seems like our phone's forum hasn't been quite active so far. Its obvious as its a new device and people are yet to find and talk about issues here. Anyway, there is surely a memory leak which is causing all this. The remaining memory is always below 1 gb which is unusual in a phone with 4 gb of RAM. And it is due to this, the apps are being reloaded in the Recent Apps list to free up more RAM! I really hope Honor will look into this and find a solution in the upcoming update!
Please share your opinion or help out if you are facing the same too. Thanks!