The local storage driver is not suitable because it does not apply the appropriate permissions to local files. This is a big issue especially for shared hosting where the webserver will create a file and the owner is locked from touching it. We detect the local driver and use the FileHelper class whenever a file or directory is created. Eg: if configured to apply chmod 777 then it will be fulfilled as expected.
The /uploads directory has been moved to /storage/app/uploads to make way for CDN support. This directory should be moved on the file system and the config (cms.uploadsPath) updated.