Both the product description and the in-game menus mention that the game can be used in an Ad-Hoc mode, wirelessly connecting to other Nintendo Switches directly, in lieu of an internet connected network. Pressing the Y button on the main menu is supposed to allow you to switch to a local, Ad-Hoc mode where you can see other, local Switches and connect to their games. However, selecting Local (as the instructions on your and Microsoft's website describe as the Ad-Hoc process) disables all network features. No network means that the system no longer looks out for a local buddy... completely breaking the advertised feature of local co-op play.

Resources: https://support.xbox.com/en-GB/games/game-titles/minecraft-switch-edition-faq  under "How do I play multiplayer?"

Quote:

"There are 2 network modes that can be chosen from the main menu by pressing Y, Online Network, and Local Network. Local Network can be used to join other consoles nearby when there is no internet connection available."

This is false.