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

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.

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