I found the cause and solution ✅
This issue wasn’t caused by Django or Python but by a Windows 11 update (October 2024 patches KB5066835 and KB5065789) that broke localhost connections using HTTP/2.
To fix it:
Open the Registry Editor (regedit).
Navigate to:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\HTTP\Parameters
Add these DWORD (32-bit) values:
EnableHttp2Tls = 0
EnableHttp2Cleartext = 0
Restart your computer.
After restarting, Django’s development server and Live Server both worked again at http://127.0.0.1:8000.
This should help others who get “The connection was reset” or “127.0.0.1 refused to connect” after recent Windows updates