Embedded which is when the metadata is actually encoded into the video file itself.
Local which is when you add artwork named in a specific manor and the textual data in a xml or nfo file into the same folder as the video.
Fetched which is when Infuse goes out to either TVDB or TMDB and retrieves both artwork and textual info for the video.
That being said that is also the order that Infuse will take for metadata available.
If Embedded it turned on Infuse will first look in the file for metadata and then fill in with fetched for missing info.
If you turn off Embedded it will then use local since most users do not add these files to their video folder unless they intend to use them. Infuse will then fill in with data fetched from the two sources for any info missing from local.
If you don’t want Infuse to use local then you should probably either remove the graphic files in the same folder as the video or rename them from the expected format.
In this users guide you’ll see what format Infuse is looking for so you can change the file names of the graphics away from what Infuse looks for if you want to keep them in that folder.
Do your files have all the metadata actually encoded into the video? If not you are by far best to leave Embedded off since when it’s on that means that Infuse must scan each file prior to displaying them to check for metadata.
Most users leave Embedded Off and they don’t place extra artwork or nfo files in with the video files unless they want them used. That will give you 100% TVDB and TMDB metadata.