Does collider.ClosestPoint always return local space coordinates?

I have line game objects using LineRenderer and EdgeCollider2D.
In the LineRenderer, I have unchecked ‘Use World Coordinates’.

I read somehwere that calling CLosestPoint() function on a collider always returns local space coordinates, however, when I try to transform the obtained point to world space using collider.transform.TransformPoint()
I always get wrong result, however, it feels like it returns world coordinates because what I get from ClosestPoint seems to be correct.

Or am I doing something wrong?