chalice local stuck 'Restarting local dev server'

Every time I run `chalice local`, it gets stuck restarting local dev server. Usually it starts serving ~1 minute or so, sometimes it never ends until I do Ctrl +C. Very rarely it restarts in seconds.
I'm running it on Windows 10 through Anaconda prompt

Is there any solution for that?

Reproduce the hang with `chalice local` from an Anaconda prompt on Windows 10, noting whether it reaches serving and how Ctrl+C behaves. Trace the local development server restart path from that command; done means identifying a repeatable cause and verifying the behavior after the fix.

Written by the indexing model from the issue text.