Does consume_uploaded_entries upload files to server when allow_upload external option is used?

Simple question, I assume when using the external option on allow_upload when I go to consume the data to update my prams at saving of the form that the same files are not being uploaded to my server too due to calling consume_uploaded_entries. In other words its smart enough to know that they have been addressed via the external option right?

Yes. consume_uploaded_entries is not only about actual files, but more generally about telling LV that you’ve handled those entries and it can go and cleanup the state it held for you.