can we use gds as a local folders on each standalone servers?

For GDS, you must make sure that the directory is not located at the root of the drive but is located in a subdirectory. For example, the directory should be D:\GDS and not simply D:\.

Only the administrator account that is used to run the application server should have read/write access to the GDS directory

https://experienceleague.adobe.com/docs/experience-manager-65/content/forms/administrator-help/manage-application-server/global-document-storage-directory.html?lang=en