Yes, the default workflow on the product is that all prints go via their cloud service. For the first year or two of the X1C's existence this was the only way to print, but they later introduced lan mode.

Leading to obvious speculation as to why they have stuck themselves processing megabyte g-code streams between your desktop and the printer on the same network...

But since cloud use is optional anyone with the security/reliability/longevity concerns just don't have to use it.

Personally I don't see the cloud stuff as providing any value at all though I know people whose kids print stuff from their makerworld site via their phone app that consider it useful.