Currently, Parsoid's deployment config is read directly from its deploy repo . However, there's an effort to standardise and unify puppet classes and configs in ops/puppet - T86633 . To that end, it would be great to have Parsoid's configs in too.
As a starting point, there's already a patch for getting rid of class duplication between labs and prod (https://gerrit.wikimedia.org/r/#/c/193082). The next step would be to move localsettings.js into puppet.