It's been over 2 years, any update on this? I'm still having this issue.

  Read many of the 14 pages of discussions.  Same problem for me.  My simple solution was to unplug the Kasa for about 10+ seconds.  Plug back in and "local only" now gone.  Guess router cleared the address and assigned a new on or refreshed it.  Who knows.  It worked and not worth effort to dig deeper.

I managed to fix mine by removing them from the Alexa and Kasa apps and then re-adding them. I'm starting to wonder, all these newer EP10 units that I got from Amazon had a checkbox to add them to my Alexa account to somehow simplify setup. I left it checked. Any chance this pre-setup by Amazon goofed it up somehow?

For what it's worth, I unplugged my smart plug (EP10 1.0 with firmware 1.0.2) from the wall socket, waited about ten seconds, and plugged it back in. The "Local only" message was gone, and it's showing up in Alexa again.

I have a 4 pack of EP10's, purchased July 2021. All 4 were working fine. Now 1 of them says Local Only. Unplugging for a minute cleared it up. Hopefully it keeps working.

I would love to try the unplug and wait 10 seconds and plug back in. However that's a lot of work for a wall switch.

Maybe we need smart plugs to plug our smart plugs into so we can easily cycle the power in them with convenience. That's totally reasonable, right? /sarcasm

There needs to be a real solution here. My EP10 plugs are all slowly returning to local only status after a few days.

  Just turn off the circuit breaker that controls that wall switch.

  @cybuzz73 I unplugged it a few weeks ago, just once, and haven't had the "Local only" issue again. But I agree. It'd be nice for this not to be an issue.

FIXED

I spent about 20 minutes and uninstalled the switch devices from the KasaApp and did a factory reset, then re-paired with Alexa. It worked for about a week. 
 

This time, I just turned off the breaker for about 10 seconds (as suggested) and it worked fine. 

I didn't read the hundred replies, but whoever came up with it first, thank you!