If the buyer uses Local Pickup and wants to use PayPal to pay, its fine to do so provided your invoice clearly indicates they are paying for Local Pickup. PayPal changed their User Protection program a few years ago to address that glaring oversight.
PayPal expects the user not to proceed with the Local Pickup transaction if they can see the item or seller is no good in person. The change protects sellers from false Items Not Received claims but the seller is still liable to ensure the item is decent and valid.
The thing with Local Pickup is personal safety. If you're selling something valuable, set up the meeting in the parking lot of your local
police station. You also don't want to be home alone when strangers come to the door.
And you'll need to be careful communicating your contact details or you'll get warned by eBay about attempts to take the transaction off-site.
I put my conract details on the invoice. It already has your address on the bottom. All you need to add is phone number.
Don't try to use Local Pickup to avoid paying final value fees. That's against the rules and consequences for doing so are severe.
