BitBytec writes the project on your Mac and the connector listens only there. That is the local part.
The planning chat and the coding agent are other companies’ tools. They can send the prompt to their own services. Downloading Flutter packages also uses the network. “Local” describes the files and the connector, not every step of the work.
Before real company data goes into a prompt, decide whether that provider is allowed to see it. The folder path does not make that decision.
BitBytec desk. This is an explanation, not a recorded build. How the product is meant to work.