Customer can’t choose from Local Delivery or Local Pickup option

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We currently have our Shopify cart set up to allow customers to choose free local pickup or shipment (which we renamed "Delivery" everywhere because we are delivering food orders, not "shipping" them). Additionally we set up custom "shipping rates" where orders over a specified price are free. This has been working well.

Now we see that Local Delivery option is natively available. It can restrict orders by postcode which is what we want. But here’s the issue:

When Local Delivery option is enabled, Local Pick up is no longer a choice for customers at the Check out cart.  (Edit-I see that local delivery isn’t even working on its own, seperate issue)

Why can’t enabling the Local Delivery option just put an extra tab in the cart for the customers to choose? Am I missing something?

I’m thinking a work-around would be to advise customers who want local pickup to just put our physical store address as the delivery address. But then we won’t have custom shipping rates option.

Any advise would be appreciated, thank you.