the documentation needs to be updated. i will do so immediately after i respond here.
are you using ollama?
enter in http://localhost:11434/v1 for the API url if it's running on your own machine. be sure to edit the system service to allow CORS.
you don't need an API type or model name. shakespeare will pull that information for you.
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Yes I'm using Ollama, with CORS enabled. And the llm responds correctly to direct prompts (not using Shakespeare) to the localhost:11434 url from any local terminal.