If your device supports Apple Intelligence, the app will use the Foundation Models to provide the local AI service as a default.

You can Click on the "Start Practcing" to the practice page (using the Foundation Model as a default), or Click the "Configure LM studio" to input the Local service's URL.

If your device doesn't support Apple Intelligence, but the system does support the Foundation model, the default AI service will be the LLMs running in LM Studio.

After configuring the LM Studio, you could also get a chance choose the Foundation Models to serve as a on-device AI service. So devices do have the Foundation Models' API, but don't have to support the Apple Intelligence.

You could switch the model from LM studio to the Foundation Model in Settings

Choose the "Apple Foundation Model (Local)" option, and click the "Test Apple Intelligence" button to see if there is a chance to use the Foundation Models as th on-device AI service.
If it shows a dialog that indicates you could use the Foundation models, don't forget to click on the "Save" button to save your choice.

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