Why does electrum client need connection to server when recovering a wallet from a seed? Isn't the generation of private keys done locally?
Your private information is never shared with the servers and your private keys can always be generated offline.
If you need help doing so, use the #electrum irc channel.
- Start Electrum
- Select restore
- Enter your seed
- Select 'Cancel' in the server selection
- Enter a password to encrypt your wallet
- Go to settings > Import/Export tab > Private keys: Export
While the generation of the private keys can be locally, to recalculate the account's balance tied to the private keys needs data from the distributed ledger (blockchain). As the electrum client does not keep a replica of the ledger it will need access to recalculate the balance of the accounts and hence of the wallet as a whole.