I’d like to jump into this discussion because I can see it is only 11 hours old.
I’d like to ask @fender4645 if you did anything with regards to blocking internet access or blocking DNS requests?
I had this integration working fine, but one day (after Nov 2020) it went offline, so I tried everything to bring it back. I resorted to starting again, deleting the integration, restarting HA, and adding back the integration (and going through all the steps to get the local key and device id via iot.tuya.com), but the entity is still showing unavailable.
I was hoping that with your recent experience of getting it working, you might know something that I’m not aware of.
I don’t want to hijack your post, but if you got any info it’ll be appreciated. My post is here for reference: LocalTuya entity is showing as unavailable - Third party integrations - Home Assistant Community (home-assistant.io)