Hey @aldi_anu, Welcome to the community!
Usually, when there is the “Missing Hosts” file error, that means that Local wasn’t able to update the Hosts file on your computer so that the internet browser knows where to look for the Local site.
Do you have any antivirus software installed? According to this post in the community forums: https://localbyflywheel.com/community/t/missing-hosts-entry-fixed/5520 the user had to temporarily disable antivirus for Local to be able to make that change.
You might also need to make sure Host file is writeable, here are some more steps that might be helpful.
https://localbyflywheel.com/community/t/help-im-running-into-an-eperm-error-with-the-hosts-file-on-windows/3508