On page 381 of Peskin and Schroeder, equation (11.90) reads
$$ \frac{\delta^2 \Gamma}{\delta \phi_{cl}(x)\delta \phi_{cl}(y)} = iD^{-1}(x,y).\tag{11.90}$$
I am having a bit of trouble interpreting this formula. On the left-hand side, we have the second derivative of the quantum effective action. However, on page 130 of Srednicki, the quantum action is written in terms of a derivative expansion, $$\Gamma[\phi_{cl}] = \int d^4x \,\left[-{\cal U}(\phi_{cl}) -\frac{1}{2}{\cal Z}(\phi_{cl})\partial^{\mu}\phi_{cl}\partial_{\mu}\phi_{cl}+\ldots\right],\tag{21.19}$$ suggesting that the quantum action is local, and hence $$\frac{\delta^2 \Gamma}{\delta \phi_{cl}(x)\delta \phi_{cl}(y)} \propto \delta(x-y).$$
However, the propagator on the right-hand side is not proportional to the delta function. So what is going on?