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I use LAN mode for my P1S currently in a shed with a local AP and no internet access and it works fine.

Says even then you have to use their app and cloud service to set up the printer.

I don't think this is correct. I'm fairly certain you can enable LAN only mode without signing in on the printer.

It's not true, my P1S+AMS has never touched the Internet and I was able to set it up fine on an isolated wifi network out of the box.