So I followed the With docker page https://supabase.com/docs/guides/hosting/docker and I saw that it says

the storage uses the filesystem backend instead of S3

however I don't see storage in the sidebar in the studio app, tho docker does show that the storage container is up

5f7616ea7364   supabase/storage-api:v0.10.0     "/bin/sh -c \"./stora…"   25 hours ago   Up 24 hours   5000/tcp

Right now you have to do all storage creation with the Storage API, and SQL for policies in the local environment. https://github.com/supabase/supabase/issues/4440

So basically the SQL snippets on this https://supabase.com/docs/guides/storage Gotcha!