The vast majority of low-mass satellite galaxies around the Milky Way and M31 appear virtually devoid of cool gas and show no signs of recent or ongoing star formation. Cosmological simulations demonstrate that such quenching is expected and is due to the harsh environmental conditions that satellites face when joining the Local Group (LG). However, recent observations of Milky Way analogues in the SAGA survey present a very different picture, showing the majority of observed satellites to be actively forming stars, calling into question the realism of current simulations and the typicality of the LG. Here we use the ARTEMIS suite of high-resolution cosmological hydrodynamical simulations to carry out a careful comparison with observations of dwarf satellites in the LG, SAGA, and the Local Volume (LV) survey. We show that differences between SAGA and the LG and LV surveys, as well as between SAGA and the ARTEMIS simulations, can be largely accounted for by differences in the host mass distributions and observational selection effects, specifically that low-mass satellites which have only recently been accreted are more likely to be star-forming, have a higher optical surface brightness, and are therefore more likely to be included in the SAGA survey. This picture is confirmed using data from the deeper LV survey, which shows pronounced quenching at low masses, in accordance with the predictions of LCDM-based simulations.
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