The error message here is usually a sign that you are running a 3rd party firewall or security software and it is blocking Fiddler's ability to listen on its default port.
If you are not running a firewall that you can configure, you might try moving Fiddler to a different port (Tools > Fiddler Options > Connections) and also ensuring that you have the latest updates for .NET and Windows installed from Windows Update.
thanks,
Regards,
Eric Lawrence
Telerik
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