You should be getting prompts like this:
If you’re not seeing both, then you might not have admin privileges to be able to proceed. If you’re certain that you are an admin with full control and the hosts file isn’t set to read only you can check some other things:
Are you running other developer applications simultaneously? That could also cause similar issues. Apps like MAMP, XAMPP, or Docker for example.
Do you have any antivirus, security, or firewall applications that could be blocking Local?