This is mostly accurate for a P2P connection. HOWEVER, when the Network in question implements different things like “device isolation,” then they are prevented from communicating with each other directly. They will have to use the internet to connect to each other even though they are on the same router/network. This is often the default setting for things like a second SSID or Guest network, for example. So, some people who have everything on the same network still sometimes connect to their devices through their internet bandwidth instead of locally on the router. This is a safer best practice that is generally recommended, but it has negative impact on people with low internet bandwidth and it adds multiple other potential points of failure into the mix.
Depends on what a person’s network management utility (usually the router UI) has available and how well it tracks things. There are many ways to track whether a connection is local or internet, but it beyond the typical user’s education/knowledge to be able to figure it out. But there are various utilities out there to help track this.
I think a lot of people underestimate the level of complexity involved here. Wyze doesn’t have direct access to your router or network, so it’s impossible for them to be able to tell you exactly what is causing your problems. You would need to give a technician full access to your network to analyze all the various possible causes, and you shouldn’t generally allow this. The following is just a small list of SOME of t he things that can be affecting this for people:
This is a common allegation, but it is total BS. All of Wyze’s servers and Services and data are 100% held in the USA, and Wyze is 100% a US-owned company. It stems from a common misunderstanding from back when they were starting, one of their primary ODM suppliers was the same ODM supplier used by another well-known company. But they are TOTALLY SEPARATE companies. This has been addressed many, many times. I actually made a list of all of Wyze’s ODM suppliers some years back, and they weren’t even all Chinese Suppliers. Still, even if it WERE true (which it isn’t), it might ironically be safer that way. Most US companies SELL all your information to data brokers, and Data brokers will SELL that information for pennies to ANYONE at all, including me for as cheap as $0.50-$5, or your neighbor. The Feds buy it all up, the CCP buys up everything you do with 95% of US companies. But if it was a Chinese company (which, again, it’s not), then they may not even sell the info to data brokers and ironically fewer people would actually have your information in practice. So, when you use a US company, nearly EVERYONE (including any rando or government) has access to all your info and everything you buy or do online (including the CCP), but when you use another non-US company your info is sometimes ironically more private. 
The truth is ironic and sucks, but facts are facts. Still, One thing I like about Wyze in comparison with most of the big companies, is that their privacy policy promises NOT TO SELL our data. I recently addressed this in another post mentioning the common allegation that Wyze sources from Xiaomi (they don’t):
If that is unacceptable, people should also stop buying anything from Apple, Google, Amazon, Samsung and more since they also all leverage ODM suppliers to do the same thing with a large number of their products. Most tech companies do. It’s totally normal.
It should also be mentioned, that Wyze recently stated that they are now branching out from the ODM supplier red ocean business model to doing some things with completely new inventions in a blue ocean strategy.
The following was addressed in my previous link about common connection issues, but I’ll provide a couple relevant quotes from employees here too:
For what it’s worth, they do a lot of 3rd party benchmark testing to ensure they are doing well and they report that they actually score higher than most companies, but they still want to continue to make improvements:
The above was a response by the Wyze VP of Product, and the following is one of the firmware engineers:
I would say this is a likely SIGNIFICANT variable related to your issues. Maybe the primary issue.
It is hard to say without having a bunch of monitoring programs on your network to tell you. It could also be any number of combination of factors as discussed in that other thread I linked to.
That’s not necessarily too relevant. As addressed above, there are so many things that go into it and no standardization with many router protocols. It is such a frustrating situation. I understand better than you may think. As I said before in that other thread and elsewhere, I once had a TON of problems. It took me countless hours to figure out everything that was contributing to my struggles. I have now gotten to the point where everything works nearly flawlessly, even though I have more than 40 cameras on cam plus (so uploading CONSTANTLY), and I can live stream at least up to 20 cameras at a time on live view (last time I checked I got over 20 at a time on the webview portal). I basically never have to reset any of my cameras, Everything works as expected >99%+ of the time (barring rare and random things out of my control like a power outage, ISP outage, or AWS outage).
As that Wyze dev said above, they are still constantly working on improving connectivity for the other rare, but frustrating cases. But one does have to ask…if some people are able to have a nearly flawless experience, and they’re using the exact same company and exact same model cameras, etc, what is the difference? The company isn’t the difference, the model camera isn’t the difference, where is the difference and what can be done differently to get a similar good experience? Those are frustrating questions to ask, but they are also critically important questions to help figure things out. It is part of the reason I started making a list of things that I found during my research and testing to have impacted my past connectivity problems so that I could finally find something that would work nearly flawlessly with everything. It was a painful journey, so I shared it here to help others have a headstart on what things they can look at themselves too.
I hope some of that helps, at the very least to give some ideas…I wish I could give you a magic pill or that I knew 100% for sure what one thing would fix your struggles, but I suspect it is likely a complex combination of some of those variables, just as it was for me. If I notice or think of something specific I will absolutely share with you what I think up though. I want everyone to have a good experience. I wish I had that power, but since I don’t, I can only share the things I have found during my own journey into creating a great smart home experience.