Added test cases to show that both flags are operating as intended.
Removed the print statement "running in local mode" as in PR#35112

The previous attempt at the PR (PR#35050) was reverted for causeing a flake.
I believe that setting the deployments terminationGracePeriodSeconds to 0 should
take care of it. I ran hack/make-rules/test-cmd.sh 50 times in a row without encountering
the flake