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Novel attack against virtually all VPN apps neuters their entire purpose
(arstechnica.com)
This is a most excellent place for technology news and articles.
No, it works at any point and the local network needs to be compromised (untrusted), the host can be secure.
So it is likely not an issue at your home unless you have weak Wi-Fi password. But on any public/untrusted Wi-Fi, it is an issue.
Yikes
That being said, it apparently does not affect Mullvad apps on any platform other than iOS (Apple does not allow fixing it on iOS). I suspect other serious VPNs are also not vulnerable outside iOS, since it is prevented by simple leak prevention mechanism.