Earlier quoted context omitted.
Please look more carefully at that document. It says, on page 5: "Instead of scanning images in the cloud, the system performs on-device matching using a database of known CSAM image hashes provided by NCMEC and other child safety organizations." And look at the diagram. The matching of image hashes with user photos occurs "on device."
I know that scanning is done by one’s device. I just think that there are better arguments against it without unnecessary exaggeration. So I wanted to be more specific on which images on your device are scanned according to that paper. Obviously I should have phrased is better, like “about to be uploaded to iCloud”…
Just to spell this out (since I think this thread could still be a little confusing):
1. The photo scanning does occur on the device, not in the cloud. However,
2. Apple's explanation indicates that this device-based scanning will only occur on photos that may be uploaded to iCloud.