@ben.turner and @austinwendt and @afragen
The first workaround I found was to disable SIP (System Integrity Protection) but that’s not a viable or long-term solution. The second workaround is to delete the attributes com.apple.provenance and com.apple.quarantine from the Local app and then restart your machine. I can confirm that it works for me all the time. So it must be some sort of permission error with a component in Local app and Gatekeeper system in macOS
sudo xattr -d -rs com.apple.quarantine /Applications/Local.app
sudo xattr -d -rs com.apple.provenance /Applications/Local.app