Most of the time they will not take action against your server, but your server will get overloaded resulting in your website being down for everyone.
Web hosting is a bit different because the resources are shared, but VPS this is much less the case. And with dedicated, it’s dedicated, so there is no problem.
More like “DDoS attacks are nasty and cause a lot of damage in their wake”. Either you need to accept the downtime, or ensure you have sufficient capacity to handle the attack.