Hi all,
So sorry we haven’t had a recent update for this! We’re still working out the details on how to fix this for all of the site services that Local utilizes.
In the meantime, if you have ran into this bug, please upvote it on our public bug tracker: https://feedback.localwp.com/bug-reports/p/local-is-unable-to-provision-sites-on-windows-when-there-are-special-characters