{"thread":"main","level":"error","stack":"Error: Unable to read hosts file at C:\\Windows\\System32\\drivers\\etc\\hosts\n at Function.HostsFileService.shouldUpdateHosts (%%appPath%%\\main\\dns\\hostsFileService.js:1:1711)\n at Function.<anonymous> (%%appPath%%\\main\\dns\\hostsFileService.js:1:1245)\n at Function.flush (%%appPath%%\\node_modules\\debounce-promise\\dist\\index.js:54:74)\n at listOnTimeout (internal/timers.js:531:17)\n at processTimers (internal/timers.js:475:7)","message":"Unable to read hosts file at C:\\Windows\\System32\\drivers\\etc\\hosts","timestamp":"2021-02-22T21:19:41.018Z"}
Note the Error: Unable to read hosts file at... part.
The hosts file is what the computer uses to know where to look for a site. Local updates this file so the computer knows where to look for the sites that Local creates.
While this isn’t the exact same error, you might take a look at this FAQ to see if that helps get Local to be able to edit the Hosts file: