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The work is done on the servers unless Adobe has started requiring you to have a powerful 8gb plus GPU and is sharing its model file.
Very true, many of the actions taken mention whether the processing is being handled in the cloud or locally.
While I’m not going to claim to be an expert on the matter, it’s my impression that authentication & verification are limited primarily to downloading/updating software— once you’ve managed to bypass the activation and keep mind to avoid updating directly through the app, you’re “inside the walled garden”.