How to deal with students who lose their digital work?
You should deal with them in the same way that you deal with students who claim to have lost non-digital work.  Here are two reasons:

This is not really any different from when students complained that &quot;the dog ate my homework.&quot;  Both paper and digital formats are susceptible to being damaged, lost, or destroyed.

They will not get any special exceptions from their boss when they lose important digital documents in a real job.


My students do most of their work in digital formats and I've never made special exceptions.  I suppose I would do so in some unusual circumstances (say, a university server where they were told to store their work had been hacked).
If you want to help them develop better digital work habits, introduce them to backups, Dropbox and/or version control.  But I don't think that is your job.