By default, the Panopto Recorder will save local recording files to your computer's C drive (C:\PanoptoRecorder).
There is a setting called "Delete recordings once they are uploaded." This setting is disabled by default, leaving all recording files on the computer, but it can be enabled in the Recorder Settings tab under System Settings. Instructions can be found here.
However, recordings do not delete immediately after being uploaded to the Cloud. It takes 48 hours for the recording directory to completely disappear from the computer. Once this has been deleted, users will no longer see the recording in C:\PanoptoRecorder or in the Manage Recordings tab of the Recorder.
Also, there is an "Advance" Recorder setting called "Capture in MP4 format." This can be found in the Windows Recorder Settings tab -> Advanced Settings under Advanced Capture Settings.