@Donald225 Yes, there are legitimate reasons why a local would want to book an Airbnb. It's a matter of making sure the guest is being honest about their reasons. A guest could be having renos done on their own house that make it uninhabitable for a time, waiting for a house sale to close, as with your guest, perhaps wanting to stay with family or friends who are coming from out of town, but the guest's own living situation is too small to accommodate everyone, they have roommates, etc.
But warnings against hosting locals are because hosts have had bookings from drug dealers, partiers, sexworkers, homeless, etc, with bookings from locals. So just be cautious.
No, I wouldn't call out guests for a missing cup. Things getting broken occasionally are part and parcel of hosting. Few of us can say we haven't accidentally broken a dish at some point. But two missing cups and 2 missing spoons (spoons don't break) sounds to me like the guests walked off with their morning coffee in your cups or something like that. Of course that's just speculation, so you can't write it in a review.
What I would have mentioned in the review is the guest's complaints about things which are part of the natural environment in your area, without specifically mentioning bugs.
As far as mentioning that insects are endemic to your area in your listing info turning potential guests off, that is actually what you want to do- you don't want guests to book who are insect-phobes who will freak out, complain, demand refunds, and mark you down because they saw an ant, a spider, or a palmetto bug.
I live in the tropics- lots of bugs. When guests check in, I mention it casually, while orienting them as to where the light switches are, that it takes a minute for the hot water to work its way through the pipes to the shower, etc. "So as this is the tropics, there are lots of insects. I thoroughly vacuum the guest space and it is certainly insect-free now, but they can find their way in the smallest opening, so make sure not to leave food or food wrappings around, shake out your shoes and clothing before you get dressed."
Pretty much any listing has what some guests might consider "cons", whether that's traffic noise, insects, noisy neighbors, whatever. It's best to make those things known so you ward off guests who might lodge complaints about those things.