Hey @kundala.d,
Thanks for following up. Hopefully, the following suggestions may help troubleshoot further. Could you confirm if the local server is running and listening on port 3000 as mentioned in your initial post? ( I’d confirm by attempting to check on the browser to see if it can be accessed )
Also, could you try switching on the Use the system proxy and see if it helps? Screenshot attached for further guidance.
Hopefully, this helps and don’t hesitate to follow-up to let us know.