Added the exclusion for the hosts file but still getting Kaspersky problems. I’m running latest version of Total Security. To fix the hosts problem I shut down AV and clicked on Fix It. All good except now when i try to browse a local site with Kaspersky running I get a 502 error. Site loads fine when Kaspersky shut down.
Resolved by adding this path to Specify Trusted Applications under Threats and Exclusions settings in Kaspersky
“C:\Users\Steve\AppData\Local\Programs\local-by-flywheel\Local by Flywheel.exe”