My Music Vs. Local

Curious as to the difference between “My Music” and"Local"? I do not see any of my library in “My Music”. All of my tracks reside in the “Local” side. I do have a local folder on my laptop and also synced to my Apple Music Folder as well. Not sure if this is the way to do it or if it creates redundancy .
Any help would be appreciated.

My music contains all your favorites. Local and streaming.

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Yeah it confused me every time.
Maybe Favourites would have been a more sensible name for that section.