Everything looks OK in the WordPress admin panel. And these updates are not visible in WordPress unless you have installed the WordPress Beta Tester plugin. These updates notifications in the Local app is a bug.
I created a new site in Local. Used wp core update --version=6.4-RC2 --force. When I went back to the core updates pages it displayed the button to update to 6.5-nightly. WordPress Beta Tester never installed.
Strange, I’ve never seen that message before about updates to another major version in beta or RC. Anyway, the message about update from 6.3.2 to 6-5-alpha should not be there in the Local app.