The documentation suggests that you do not need the entitlements from Apple to do local development - that all you need to do is turn of SIP, enable developer mode, and turn signing to "Sign to Run Locally".
These directions are out of date and should generally be ignored.
Am I missing something here regarding the steps for local development?
Yes. The development entitlements are actually a major improvement that were introduced after the existing documentation was written and which DRAMATICALLY simplify DriverKit development.
What they are is a variant of the standard DriverKit entitlements which:
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Match against ANY hardware configuration, making it unnecessary to apply for device specific entitlements.
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Are ONLY available in Development signed builds, limiting them to just the devices directly registered with your developer account.
In practical terms, they make it very easy to sign a DEXT (at least in development), with the basic process being the same as any other standard capability.
Does one need to request a development version of the entitlements even for local development?
No, there isn't any approval process for the development entitlement variants.
Do I need a paid developer account to do this?
I'm not sure about that. However, you can check by viewing the capabilities of any app ID you've registered. In the list of capabilities, you'll see the list of DriverKit entitlements, each with "(Development)" at the end of their names.
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Kevin Elliott
DTS Engineer, CoreOS/Hardware