Hi Johnkhizer,
Welcome to the Microsoft Q&A Platform. Thank you for posting your query here.
By default, the cluster is Azure Arc-connected, when you create a Kubernetes cluster on Azure Local.
You can create a Kubernetes cluster on Azure Stack HCI (Azure Local) using several methods, such as ARM templates, CLI and the Azure portal.
Azure Portal: https://learn.microsoft.com/en-us/azure/aks/aksarc/aks-create-clusters-portal
Azure CLI: https://learn.microsoft.com/en-us/azure/aks/aksarc/aks-create-clusters-cli
Arm template: https://learn.microsoft.com/en-us/azure/aks/aksarc/resource-manager-quickstart
Hope this helps!
Let me know if you have any further queries!