In vendor/acquia/drupal-recommended-settings/settings/acquia-recommended.settings.php
for local development, local settings files are included by below snippet -
if (EnvironmentDetector::isLocalEnv()) {
$settings_files[] = DRUPAL_ROOT . '/sites/settings/local.settings.php';
$settings_files[] = DRUPAL_ROOT . "/sites/$site_name/settings/local.settings.php";
}
this condition EnvironmentDetector::isLocalEnv() doesn't work in cloud ide because there in cloud IDE, this variable is set AH_SITE_ENVIRONMENT and thus have to manually add the require line/condition in settings.php for the local development