I think your concern might really all be about the meanings of the words. So I'll make a very simplified version of the picture so you can see what local means and doesn't mean.
In a Stern-Gerlach device when you measure $\hat\sigma_z$ the incoming particle's beam has some incoming width transverse to the direction it is going. Then the beam widens and splits and on each branch of the split, the beam the spin has changed to be polarized into an eigenstate of $\hat \sigma_z.$
So now you can look at a system of two particles use the x direction for the width of the beam of one particle and the y direction for the width of the beam of particle two. So it starts out like a square and at each point in the square the wave has a value for this joint spin state, say $$\left[\begin{matrix}1\\0\end{matrix}\right]\otimes\left[\begin{matrix}0\\1\end{matrix}\right]+\left[\begin{matrix}0\\1\end{matrix}\right]\otimes\left[\begin{matrix}1\\0\end{matrix}\right].$$
If we send particle one through a Stern-Gerlach then the square widens splits along a vertical line and the spin state becomes $\left[\begin{matrix}1\\0\end{matrix}\right]\otimes\left[\begin{matrix}0\\1\end{matrix}\right]$ on the left square and becomes $\left[\begin{matrix}0\\1\end{matrix}\right]\otimes\left[\begin{matrix}1\\0\end{matrix}\right]$ on the right square.
If instead we send particle two through a Stern-Gerlach then the square gets taller, splits along a horizontal line and the spin state becomes $\left[\begin{matrix}1\\0\end{matrix}\right]\otimes\left[\begin{matrix}0\\1\end{matrix}\right]$ on the bottom square and becomes $\left[\begin{matrix}0\\1\end{matrix}\right]\otimes\left[\begin{matrix}1\\0\end{matrix}\right]$ on the top square.
Each of those is local in the sense that marginals of the other particle didn't change. If you then do the other measurement afterwards, the the whole square deflects left/right or deflects up/down just like a Stern-Gerlach deflects an eigenstate in a particular direction. And the spin state doesn't change.
When you do both at the same time, the it just heads over the the top-right or the bottom left, again the marginals move the same way.
The whole point is that as the spin state changes, the positions change too. That's where that information is getting spread.