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The e2e suite now registers the localai-proxy binary and points proxy models back at the test server itself, so a request leaves LocalAI through the backend, returns over REST and is answered by a mock model. Chat, embeddings, TTS and transcription through the proxy return the upstream model's answer; a chain whose proxy target's upstream model fails to load serves from the local target; and a realtime pipeline whose LLM stage is a chain on a remote target completes a turn, then switches to the local target with a localai.model.failover trip event when a gate in front of the upstream starts answering 503. The docs describe the localai-proxy backend next to cloud-proxy and add a per-stage remote LocalAI example to the failover page. Assisted-by: Claude:claude-opus-5-5 Signed-off-by: Ettore Di Giacinto <mudler@localai.io>