Your music files stay on your computer. To show a status, AudioTwizz does send a few things over the internet. Here is exactly what, and how to switch it off.
Your status goes to Discord
The song title, artist, album and progress, so Discord can show them on your profile.
Cover art is uploaded to an image host
Discord can only show a picture it can download itself. So a cover read from your file is shrunk to 512x512 and uploaded to an anonymous image host (litterbox, catbox, uguu, tmpfiles or 0x0.st), and the link is passed to Discord. Anyone with that link can see the image. This is on by default. Turn it off in Settings with Upload covers from my files so Discord can show them.
Missing details are looked up online
The song title and artist are sent to iTunes and Deezer to fill in missing covers, albums and lengths. Switch it off with Fill in missing covers, albums and lengths. Links for the "Open this song" button come from song.link.
Extensions: the list and downloads come from the AudioTwizz update site. The FL Studio extension reads your FL Studio window title on your PC. If you choose a picture for it, only that picture is uploaded to an image host so Discord can show it. Your project name goes to Discord as the status text, unless you hide it. The Le Twizz extension runs entirely on your PC: it downloads nothing and sends nothing anywhere. The Watching extension reads the media controls and browser window titles on your PC (and, only to find a season and episode number, lines on the page that look like “S2 E4”, through Windows’ accessibility interface), and only for sources you’ve allowed sends the show name, episode text and a thumbnail (hosted like cover art) to Discord and, unless you switch it off, the show’s name to tvmaze.com to look up a poster.
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Update checks go to our server
The app asks the update server whether a newer version exists, and which older versions you can go back to. Your settings, including your Application ID, stay in a folder on your PC.