Windows 11 October Update Breaks Localhost At A Disastrous Time, Here's The Workaround
After applying the October update, KB5066835, users are losing the ability to utilize the “localhost” feature. Without this functionality certain applications won’t be able to work. For example, developers rely on this feature to test websites before deploying them on the web. Moreover, some applications use the localhost connection to access services running on a device.
Microsoft is aware of the issue and has provided guidance to those who are being impacted by it. The company says users should head over to Windows “Settings,” then go to “Windows Update,” and proceed to click on “check for updates.” After any updates are applied, users should restart their system. If Windows says that there aren’t any updates available, users should go ahead and restart anyway, as that might fix the problem.

Moreover, one of the September updates, KB5065789 specifically, might also be adding to the headaches. So the solution offered by the company might not get everything working again.
If Microsoft’s simple recommendations to install the latest updates and restart doesn’t work for you, then the only option is to remove the offending updates from your system.
The following command line prompts will do the job:
wusa /uninstall /kb:5066835
wusa /uninstall /kb:5065789
Just remember to keep tabs on the situation and reapply the updates once Microsoft has fixed the bugs and you feel comfortable doing so.
It’s always frustrating when updates break critical parts of software. All it does is discourage users from applying updates in a timely manner because they worry that their device won’t work the way they need it to. Hopefully Microsoft gets this cleaned up sooner rather than later.