Oh now that’s different than my experience but maybe it’s because I have several Macs on my network so I see listings like this:
username@mac-studio.local
username@mac-book-pro.local
If I click one to add it, it asks for the password and if I enter the password correctly, it shows up as a location and then shows the triangle at the right indicating a setting sheet if I click it. Clicking on it takes me to the location sheet and a list of databases with switches to turn them on or off. I wanted the Global inbox synced between all (this is what allows me to use any device to ingest notes and data) so I flipped the switch. And it will light up that database and shortly after, you’ll see the wheel spinning next to it indicating it is syncing. First sync takes a bit because they go by all items but once that’s done, it’s incremental and fast.
It sounds like you got there but something is different in our setups because I see the user@machine.local instead of “local network”
Here’s a screenshot of what I see in DTTG on my phone: