Fix --offline flag (#8676)

* WIP

* WIP

* WIP

* WIP

* WIP

* add offline logic branch

* Clean up

* Formatting

* Optimize

* Rename test folder

* Add changelog file

* Fix whitespace

* Add <CABAL_ERROR> normalizer tag

* code review changes

* Delet vs code file

* Fix import

* fix wrong output file

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Co-authored-by: mergify[bot] <37929162+mergify[bot]@users.noreply.github.com>