LocalMachine is an example of a Dynamic Object.
If you open the object, you'll notice that there is no IP address associated with it.
The IPs are locally defined on the gateway.
LocalMachine is one of the default ones the gateway updates on its own, which I believe only resolves to the external IP.
If you want all interface IPs, then use LocalMachine_All_Interfaces.
You can create arbitrary dynamic objects and update their definitions using the dynamic_objects CLI command on the gateway.
A couple small limitations with Dynamic Objects:
1. They can be used in Access Policy and NAT rules only.
2. In pre-R80.10 gateway releases, usage in the policy disables SecureXL templating for that rule and any rule after, leading to decreased performance (R80.10+ does not have this limitation).
3. Any Access Policy rule that uses a dynamic object must have an explicit "Install On" target, otherwise policy installation will fail.