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@Berny in the blocked application, the port is configurable. So, I solved the problem by changing the port assignment in the blocked app. Everything is working fine now. My questions are: Does KPM really need to use the address/port? If it does, should the port be also configurable in KPM? (If the other app was not configurable, I would have been in trouble.)As suggested by another poster, I have already asked the Kaspersky Tech Support these questions. They are supposed get back to me via email. I will post their response here.

@Berny Thanks. I am not sure how this helps me though. I don’t have the Kaspersky Firewall. I only have the Password Manager. In other words, PM is the only Kaspersky application I have installed on my system.

I ran into an issue yesterday where I could not start an application that uses the port 10000 at the IP address 127.0.0.1. It turns out this port is used by a process called kpm.exe (Kaspersky Password Manager). Is the use of the port 10000 by KPM intentional and is it necessary? I am running KPM 9.0.2.20210 (t) / 1639410386_7112 / 1.0.523.0-0.8.3.0_1 on Windows 10.