What you’re describing sounds like an issue with SSL certificates, which would be hard to zero in on. From the name of the log – local-by-flywheel.log it seems like this is the “Local Classic” version.
Can you try manually installing the latest version of Local:
Note that the newer versions of Local will sometimes be called “Local Lightning” and is technically a completely different application.
Once that newer version is installed, you should be able to create new sites, or import existing ones by following the instructions in this help doc: