MWAN3 breaks local routing

Hello,

on my Turris with TurrisOS 4.0.5 mwan3 (2.6.18-1.36) configuration works well with local_source set to none. When I set it to lan it breaks all routings. After such change I see lointerface with additional ip of lan interface (ex. 192.168.0.1/32) and default routing via ip of lan interface (ex. default via 192.168.0.1). All hosts in lan becomes unreachable.

How should mwan3 local_source setting work? Is this lo additional ip and default routing via lan ip correct?

BR,
Michał Szamocki
Cirrus