How do I run Logseq locally, without syncing files to an online location?

[I’m posting a number of questions, hopefully I or others will provide answers]
[This answer should not only explain how to set up local files, it should also explain that people must grant access permissions every time Logseq is used in the browser, discuss the desktop app when it is released, and address the issue of local files that rely on online files such as online images, etc.]

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