Terraform provisioning state issue

Hello Team
I tested to store terraform state file in DB of morpheus with “backend - internal”
and see correct

terraform {
  required_providers {
    aws = {
      source = "hashicorp/aws"
      version = "5.50.0"
    }
  }
}

image
But if I want to use remote terraform state backend ( select local backend ) I cant see status of provisioned resources

terraform {
   backend "s3" {
     bucket     = "terraformstate"
     key        = "project/terraform.state"
     region     = "ap-southeast-1"
     access_key = "var.key"
     secret_key = "var.secret"
   }

Why its not visible correctly ?
and How morpheus works with remote state? for example team changed count of ec2 instances - morpheus will reflect it in resources?