Migrating to Local with Duplicator plugin

I have tried to migrate a site with Duplicator and it’s been a pain and I haven’t been able to make it work.

I have the archive and installer files. I created a new site via Local, but deleted everything in the app/public. I moved the archive and installer files there and run the installer. However, when I get to the Install the database step, it keeps failing.

What do I need to do at this point?

What is the host? Localhost is not working, it fails immediately. When I put the name of the local site, e.g. if the site is called test.local, I put test in the server, it seems to run but it timeouts.

Should I create a new database? Because when I check the name of the database via Local’s dashboard, all I see is local. When I put this in the installer, it fails.

Can someone please guide me through this step?

When I import the two files by dragging and dropping them on Local icon, it imports the site, but some links are still pointing to the live site so I’d need to run search/replace. I thought that the plugin is meant to go around that?

Thank you.

EDIT: I used all the credentials from the Database info part of Local, still failing. This is the error I get:
error Processing Request An error occurred while testing the database connection! Please Try Again... If the error persists contact your host for database connection requirements. Status details: success