Local version of the internet-identity isn't responding when i try to create a new internet identity anchor

I see, you are not using the development build. This might be related to canister call certification. Could you try with the official dev build (Release release-2022-03-30: Generate custom release notes (#608) · dfinity/internet-identity · GitHub) or by setting the env variable II_FETCH_ROOT_KEY=1 before building locally.

But this is just a guess. Do you have any console output in the browser?