For FireFox, I specify the PAC file under FireFox's options and point it to a PAC file on the computers local C drive using "file://mypac.pac" (I don't remember the syntax if I used two or three whacks after "file:"). I can see it working in the proxy cache server's access log. It's getting HIT on the server's cache and serving it.
I haven't been able to get that same syntax to work under INTERNET OPTIONS. When I tried to research it online, there was a lot of conflicting advice about:
a) if there should be two or three whacks after "file:",
b) if the ".pac" file extension should be listed or left off,
c) if a local drive PAC file ("file:...") would work at all under Internet options and/or Chrome didn't work with a local PAC file
I tried different combinations of the above, but requests from Chrome never went through the proxy when I monitored the proxy's log.
From the same PC, FireFox's requests did go through the proxy and got hits on the cache if I closed/re-opened FireFox and went to the same website again.