Good point and counter argument. The sitiation was similar in Norway where certain cities or municipalities announced corona passports. (They were delayed so I'm not sure if they were implemented, probably not)

This is an interesting conflict where the government can be less restrictive than a local municipality or state. However, we must not forget that these local decisions can be impacted by government control mechanisms where the government shifts the responsibility and blame to the state or municipality.

In either case, local tyranny can be escaped if we have mobility without restrictions. Since governments can restrict movement, it exacerbates the outcomes of bad local policies.