Hello @eskimo Can you help us understand what the issue might be here. We have noticed this with other local VPN's as well. Thanks in advance!

Hello @eskimo : You will find more details in the feedback assistant : FB9186644 (Network usage incorrectly attributed to VPN app)

Thank you @meaton- I have opened a bug using the feedback assistant. Not sure, if the details can be shared here.

Here our VPN is implemented using Apple's PacketProviderNetworkExtension.  As per this network extension, iOS ensures that traffic is first tunnelled through this local VPN and then packets are routed to original destination. Hope this answers your question.