No, first things first. Get the TV remote. Turn the TV on and on the TV remote, find the key that says INPUT. On my Samsung TV remote, it is at the top center key.
Once you get the INPUT screen, select "Tuner" (may be labeled Antenna) and select that. Now when you scan for TV channels, on the TV, you should have no problem.
The issue is, your TV is set to receive it's picture from the composite output of the Wally. You have to switch it back to use the TV's built in channel tuner.
To use the Wally, you have to switch the TV back to using the composite inputs.
I just looked at a Wally's inputs. It does NOT have a local channel antenna input... So ignore the below!
You could run a piece of antenna cable from the TV amplifier to the local TV antenna input on the Wally... If it has one. If so, you can use the Wally to act as the TV tuner for your TV. Then, you wouldn't need to switch the TV's input back and forth. The local channels the Wally finds will show up on your Dish Channel guide, on mine (not a Wally tuner) they show as yellow in their normal Channel slot.
You can't scan satellite channels, only OTA or Cable channels.