The Git Lfs website says that they are stored on a remote server, but I cannot find out where that information is in our repository.
They’re not stored in the repository, at least in a technical sense. git-lfs adds a second area, the large file storage area, which is a peer of your repository. The large files are stored there.
I would have expected BitBucket to present this information in a meaningful way on their website.
In addition, when a second user clones the repo, the project contains only pointers to the LFS objects.
They need to install git-lfs. That is the program responsible for downloading and uploading the large file content.