Why does Tautulli show that my plex client is playing from a local 127 Ip address

I just installed Tautulli and I’ve noticed that any device that is signed in to the same plex account that I use for my Plex Media Server shows as having a local 127 IP (Plex Relay). I have a SYS server running the community version of quickbox. I disabled Plex Relay by renaming the Plex Relay File and Tautulli still shows my devices as using it. I don’t think it is really using Plex Relay since it is still streaming at the full Mbps and not the max 2mbps that I read Plex Relay is capable of and also since I disabled Plex Relay. I don’t think it is causing any issues but I am just curious if this is normal and that there isnt something wrong with my setup. Tautulli shows all the users I share my libraries with as having their own IP. Thanks in advance to anyone who can help explain this to me!

The right place to ask is problably on their Discord or reddit area:
Discord or Reddit.