Well, not quite.

The local governments are in compliance with state law until the feds use it for immigration enforcement. Then the supremacy clause takes over and more or less nullifies it. As long as it isn’t the local agency using it for enforcement, then they are in the clear.

I think that Flock contracts are getting cancelled due to unpopularity, not because of compliance worries. Can you point to any actual cases where enforcement of the state law led to a termination of service?