I can give my feedback as a new WS user, the first time, I tried to drag and drop "Local" styles somewhere else in the input field and I got the notification error, at this time I went to the documentation to understand how this thing is supposed to work. Why not extract this "Local" chip from the input field and keep it somewhere else in "Styles Sources" section separately (like on top of the input field)? Our brain expects everything inside an input field to be modifiable/removable.
I see. The icon suggestion in the previous thread is definitely better. Someone would still think he can remove the icon chip but that's not a big problem after learning how design tokens work in WS. I was thinking about something like a trailing button next to the input field, here is an example of this pattern, but not sure it will work well with multilines input.
I agree, the main source of confusion, at least for me, is having local styles inside an input field (having something we can't clear nor move inside the input). But to be honest that's not a big deal we get used to it quickly.
