Are local operations (one's received from local client) treated differently from remote operations (one's received from peer) during mempool management? Are they given higher priority are included before remote operations while adding them to next block? There is priority ordering for operations, based on operation type, I curious if for contention between local vs remote, is there priority for local?
In general, there would be some logic to prioritize local operations versus remote operations. Yet, that would only be needed when a baker has both a baking slot, and the need to emit new operations in the same block, something that does not happen very often.
So, no, right now, there is prioritizing of operations based on their sender. Indeed, that could be easily added, but there is little incentive to do it.