Thermostat Controller vs Thermostat for controlling temperature

I'm having a bit of confusion on how to setup the thermostat controller and whether to have the actual thermostat setup to do something at all. For example if I have the controller setup to turn on the AC at 76 degrees and the actual thermostat setup for 75 degrees does the controller override the thermostat and prevent it from coming on until it hits 76 degrees? Secondly, should I have the thermostat set to off so that ONLY the controller actually sets the temperature? Thirdly if someone manually manipulates the thermostat what then?

Think of it this way. The setpoint for turning on the AC is stored in the device on the wall. It can be set from the front panel or it can be set by Hubitat. The last one to set it is what sticks. Depending on the devices and networks involved there can be minutes between setting a set point (by either method) and getting it reported to all devices (front panel, hubitat, ...) It gets more complicated if you add more devices and rules.