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You must use the actual IP address (instead of "localhost") for the Web API URL.
Reason is in the section called “Recording scripts automatically (using Recorder)” and the section called “Recording scripts manually (using Fiddler + JMeter)”, you will use the JMeter proxy server or Fiddler (or any other web debugging proxy tool) both of which will bypass "localhost".
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Do not select the "Enable HMAC-based client message authentication" option in the PowerServer project painter > Security page, otherwise replaying scripts will fail.
This option is NOT selected by default.
If you have not configured and deployed any PowerServer project before, you can practice by following Quick Start > Guide 1 to deploy the Sales Demo application.