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Distributed Model-Based Diffusion (DMBD), a distributed server-robot method that decomposes the reverse diffusion process into local conditional reverse diffusion processes. This decomposition enables each robot to iteratively perform denoising independently within its own control subspace while conditioning on the current trajectory estimates of the other robots that are aggregated and broadcast by the server. Extensive simulations in goal swapping, multi-floor coverage, parking, and rush-hour scenarios demonstrate that DMBD achieves strong scalability