Activate Store Commerce Failed on Local VM
Your CSU seems to be OK. However, POS is not able to communicate with the CSU. This will be due to two reasons.
1. SSL certificate trust : Since you are able to use CPOS it should not be the case. But make sure that there are no trust issues, as I can see edge showing "Not Secure".
2. Loopback exemption may be required : If POS and CSU are running on the same machine, you might need to add POS application to loopback exemption for the POS to be able to access local resources. This was requirement for MPOS, not sure about store commerce. You can use the below tool to check if store commerce is showing in that list. Windows 8 AppContainer Loopback Utility :
https://telerik-fiddler.s3.amazonaws.com/fiddler/addons/enableloopbackutility.exe
If you are not keen on trying offline functionality or in app mode, you can install store commerce in hybrid mode which will load the CPOS in SCA shell. To install SCA in hybrid mode, uninstall current installation and use the following command for installation.
.\StoreCommerce.Installer.exe Install --useremoteappcontent --trustsqlservercertificate