Using Camunda 8 SaaS means that your processes are executed by the Camunda SaaS setup which is running somewhere at a cloud provider like Google, AWS etc. The Rest connector also runs in that setup and therefore localhost will resolve to that cloud provider. You cannot access an API running on your local computer just like that.
I you by manual install mean the the self managed (Camunda Platform 8 Self-Managed | Camunda Platform 8) - either local install or Docker, I don’t thinks that will work if you need to use the rest connector. As far as I know, the connectors are only available (for now) inside the Camunda 8 SaaS setup.
Rest connector is a good improvement to avoid repetitive code in service tasks and help improve readability and efficiency in workflows.
Thanks for your replies, I hope the feature with be release soon for local installation.