Earlier quoted context omitted.
Caveat: this kind-of-works. There are plenty of subtle bugs around this. For example, it's hard to have a default model, and clients need to select the model explicitly in every API request, which makes it difficult to work with several models and multiple clients.
There are tools like llama-swap that make this pretty bullet proof and offer an OAI style API and compatibility for local Agents. I've been running flavors of OpenClaw and Hermes exclusively on local models hosted this way. https://github.com/mostlygeek/llama-swap
Adding llama-swap adds a fair amount of complexity that is unpleasant to debug and its documentation isn't very good (the only real doc is the sample config file).