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Locally doesn't currently keep state across restarts. When Locally stops, the resources you created within it are gone, along with their data: blobs, files, queue messages, table entities, secrets, database contents and everything else. The next time you run locally build, it starts from an empty Local Cloud Environment.
Persisting state across restarts is planned for a future release.
Your setup is kept, so you don't need to run locally setup again: your Tenant and Subscription IDs, the local CA, DNS configuration and installed plugins. Because the Subscription IDs stay the same, existing Terraform or OpenTofu state still points at the right subscription.
Treat a Local Cloud Environment as something you can rebuild. After a restart, re-run your infrastructure as code (for example terraform apply) to recreate your resources, and reload any data your application needs.
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