The fact that it needs to be stated means that it has cloud features.

Opt-in and "encrypted at rest" AKA actually encrypted are the correct defaults.

I'm also uninterested unless both the client and the server are made open-source, because terminals are a bread-and-butter program and there's just no way I'm getting locked into someone else's cloud for that.

But the specific sentence you've quoted is a strange thing from which to recoil, from where I'm sitting.