Thanks for the feedback, Nick!
After you pointed out the logs mentioned Operation Not Permitted, I realized I probably knew the answer. Windows runs applications with less privileges by default. My suspicion is that this caused the error!
I then went to the Start Menu or start search bar, searched for Local, then right-click and “Run as administrator” to open the application with full privileges. Magically, the import process starts!
I wonder if others on this forum complaining about Windows version of Local are suffering from a similar problem?
Thanks for your attention!