If file is movie.nfo it will break "Local information only" unless...
https://kodi.wiki/view/NFO_files/Moviesmovie.nfo
Kodi may also scan nfo files named movie.nfo. To use this name, the setting Movies are in separate folders that match the movie title must be Enabled in the Set Content Screen
- If the above setting is not enabled, Kodi will ignore the movie.nfo. If the <VideoFileName>.nfo file is available, Kodi will scan this one instead, otherwise an online scrape will be performed if a valid scraper is set for the Source.
- If you use movie.nfo and later Export your library to Separate Files, Kodi will still create the nfo file in the <VideoFileName>.nfo format and two nfo files will exist. If a Refresh or rescan is run in future, and the above setting is still enabled, the <VideoFileName>.nfo file will be ignored in favour of movie.nfo, which means any changes you may have made to the library entry (play counts, watched status etc) will not be re-scanned back into the library.
- We recommend using the <VideoFileName>.nfo format for nfo files to avoid the above traps.