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Local MCP signs in to the OData service on your behalf — $metadata, collections, POST. It uses your credentials, not the assistant’s. try prints the flags. Common cases: Example (Microsoft Graph):
Sign-in prompts show as Sign in at <url> and Code: <code>. Tokens stay on your machine and refresh for you. They never appear in tool results or in the command that add prints. A daemon must pass --grant client_credentials (and --client-secret or ODATA_MCP_CLIENT_SECRET). There is no TTY detection; an interactive grant with nobody present will hang.

If you own the OData API

Publish protected resource metadata on that API. Local MCP then discovers the authorization server from a 401.
There is no Use call. The document is public at /.well-known/oauth-protected-resource. Operators still need a client id when the authorization server does not allow dynamic registration. Every flag: How Local MCP works.