Yes. All Meraki equipment requires internet access, one way or the other, in order to be managed by the Dashboard in the Cloud.
If your Branch is only connected to the Internet via MPLS and your HQ is the exitpoint for the MPLS, and the MPLS router at the HQ goes down, then yes. Your Branch site will also loose connectivity to the Cloud.
However, even though the Meraki equipment looses connectivity to the Cloud, it will still be able to switch locally. So your devices will still be able to use they Local Network, eventhough the MX can not reach the cloud.
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