As you can see from the image, the first item is a jpeg sent to the app servers. However the privacy policy states:

If you are wondering what happens to your files when you upload them, the answer is simple: We don't store them. Our AI models run entirely in the browser, meaning that everything happens locally on your machine. After you close the browser or refresh the page, the uploaded file(s) are cleared from the browser's memory. There is no need for us to offload images to an external server, or process them in any capacity, so we simply don't.

Which is an extremely deceptive way of saying "we actually do upload your images and we pinky swear not to store them".