Hi qq247540,
Please check both devices IP addresses. If they share the same local network (for example both start with 192.168.1.X or 192.168.100.X) P2P should work without problems.
Since there were no changes in this area in 1.39.8 update there must be another explanation to this.
You can downgrade to 1.39.7 using the previous installer:
Connect Anywhere is not needed for same network connections and almost always P2P will be used.
The only possibility for it to not work would be when something blocks Remotly from checking that both devices are in the same network. Remotly uses it's own external STUN server to do this. If something goes wrong here Connect Anywhere will be used.
Please check these options:
View attachment 380
Try enabling UPnP so that Remotly can force your network router to use P2P for all local connections.