Do I need this permission to test out development on my local phone? I believe I do since I cannot get the monitor extension to embed AND sign, making it so i cannot test this feature. As in the class will not instantiate and trigger after specific time has happened
To test the feature, you don't need the permission. You must add the Family Controls capability to your Xcode project before you can test it.
You must request the permission for your app and each extension before you can distribute your app.