World rotation is the direction the bone is pointing in world space (eg as seen on your screen). Given that definition, it can only point 0-360 degrees. When it points toward the right edge of your screen the rotation is 0. Rotate it toward the bottom of your screen at all and it'll flip to eg 359 degrees. This jump between 0 and 359 degrees can cause issues.
Local rotation doesn't have that issue. Also the rotation you want for this setup is relative to the parent bone, not relative to world space, so it makes sense to use local. In other words, the straps rotate with the parent. In world space the direction it points would not depend on its parent bones.
Yes, clamp applies to the values set to the target bones (the range on the right side).
height13 How did you arrive at those values? Or was it just trial and error?
Nooooo, don't attempt trial and error for transform constraint ranges, it will just be confusing.
The source bone local rotation when pointing straight down is 0. When it is fully bent, it is -180. So, your source range is 0 to -180.
The target bone local rotation when the source bone is at the 0 end of its range is -90. When the source bone is at the other end of its range, you want the target to point up, which is -180.
You can see these values by setting the constraint mix to 0 and rotating the bone through the range you care about and choosing Local
axes. Think about the range for the source and target and set the appropriate values. Don't guess or just enter values randomly, it's unlikely to give you the results you want.