Docs: https://developers.cloudflare.com/dynamic-workers/
Also another blog post from when the feature became generally available: https://blog.cloudflare.com/dynamic-workers/
I agree it would be an awkward choice for an agent that runs as a local application, but the trend I think is towards agents running more and more on servers.
Servers, sure. Not necessarily your servers tho
workerd is open source, you can run it on your own servers.