For anyone still experiencing this, you can try installing missing DLL files as described below.
I haven’t been able to reproduce the “can’t create or connect” issues on Windows systems that have these DLLs so far, and restarting the site also works for me.
The only other time we’ve seen this was when Local was running on a slow HDD and Local’s MySQL startup timeout was reached, but if you’re on a modern SSD this should not apply.
If you still experience issues after this it would be helpful to see Local logs again once DLLs are present.