[nohup2]

Are you sure? Just tested it and it works locally and offline

[sneak]

It says right on it when you enable it:

> Dictation sends information like your voice input, contacts, and location to Apple when necessary for processing your requests.

[jjice]

I believe you're correct as of the last few iPhone generations. iOS 27 (with newer models of device required) have even better transcription coming as well, all on device.