I had a similar problem, but my local deployment hangs with a Error: context deadline exceeded after 5 minutes on step 3.

? How do you want to set up your local Atlas deployment? default
Creating your cluster local1793 [this might take several minutes]
1/3: Starting your local environment...
2/3: Downloading the MongoDB binaries to your local environment...
3/3: Creating your deployment local1793...
Error: context deadline exceeded
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