From my reading it seems that if you have both an SD card and Cam Plus, smart detection events are only stored to the cloud and not locally on the SD card. Is this correct? What if the internet happens to be out?
They get recorded and tagged on the SD card as well. If you have the SD card set to events only you get exact mirror to whatever is on the cloud. If you set the SD card to continuous you will get event icons wherever an event occurs.
I don’t know if they get tagged if the WIFI is out but the SD playback shows tagged items. I’m not turning off my wifi to test. 
I doubt they will as our friend AI is on Wyze servers 
So, if the internet connection is down, it will still record the event on the SD card and then upload it to the cloud once the internet is restored? Thanks.
If the internet is down there will be no cloud recording and the recording on the SD will not be uploaded to the cloud.
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If it was just recorded on the SD card (internet was down), is the local recording accessible from the app? Or maybe it wouldn’t be recorded at all if it needs internet access for smart detection?
I have no idea what camera you are using but all my plug in powered cameras V3, V3PRO, V4 record continuous with or without the wifi. You can still access the app and SD via Cell Data. If all of the WYZE and AWS servers are off line (Unlikely) that would be a problem. I don’t do just event recording so I don’t know about just events.
Yes it is.
It will still record to SD card as long as you have continuous recording selected. No cloud recordings and no events tagging as it needs access to Wyze servers for that.
I don’t have a Cam v3 Pro, so I am not sure how it operates when the Internet is down. The v3 Pro is suppose to have onboard Person AI detection.
https://support.wyze.com/hc/en-us/articles/9873842267675-Wyze-Cam-v3-Pro-Person-Detection-FAQs