May depend on the specific IoT device, what features you use on it, and if you need local main LAN network clients to access the YazFi guest WiFi network clients. For example, if you have multiple Amazon Echo (Alexa) devices in the home certain features (if I remember right the multi-room speaker/music feature) do not work if the devices cannot communicate with each other.
See the
GitHub for YazFi to see the YazFi explanation what each of it's options/settings means. Or mouse over each of the options in the YazFi GUI and click on the text name when you see a "?":
Personally, I have two way to guest and one way to guest set to No. And Client Isolation set to Yes. No general issues with WiFi smart plugs, WiFi cameras, WiFi smart bulbs, and several Amazon Echo devices. My main LAN mobile devices can control/access those devices without issue. But as indicated above it depend on the features you use with certain devices. I normally don't use the Amazon Echo multi room speaker option. If I want to its a simple mater to set Client Isolation to No so I can group the Amazon Echo devices in multi room music mode in the Amazon Alexa app