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Multiplayer - LAN latency problem

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My daughter and I both play on Xbox Series X on the same local network however when connecting multiplayer we VERY often have high latency issue that would be common for someone who's hosting an online game with my slow upload speeds.

Why is it that the multiplayer connection has to traverse the internet for local Lan games instead of using a direct connection?  This is a pretty big deal since we live in an area that has very few broadband options and ours is as fast as you can get.

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This has been an issue from day one. I have posed about it on here and on other forums.  I have not ever seen the developers mention anything about fixes or work arounds for players attempting to plan LAN or from the same internet connection.  It's pretty sad really.  In my household we have 5 copies of this game, and we are unable to play it together because of the lag and terrible performance when trying to do so, from the same internet connection.

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