I’m having the same issue, it displays “local” but it seems to be in fact “all”, since it displays communities from other instances.

“Subscribed” doesn’t seem to work at all.

I have this same issue! Let me know if you find a fix!

It’s come up a few times. Seems to be a known issue. Work around is to change your default to whatever you like via setting then restart the app. Annoying but it works