1. If you properly deploy the DXA Web App (incl. CD artifacts such as license file) on your local machine, all the functionality will work.
2. See point 1. Everything should work, also if you are debugging.
3. DXA Link Resolving just builds on CD Link Resolving. How does your cd_link_conf.xml look?

1. If you properly deploy the DXA Web App (incl. CD artifacts such as license file) on your local machine, all the functionality will work.
2. See point 1. Everything should work, also if you are debugging.
3. DXA Link Resolving just builds on CD Link Resolving. How does your cd_link_conf.xml look?

UPDATE

It looks like the part of the stack trace you initially omitted contains very valuable information about what the problem is: it looks like your cd_link_conf.xml is not well-formed on your local machine. The stack trace even shows a linenumber where the problem is.

I still don't understand why you expect link URLs without port number if you don't use default HTTP(S) ports, but it may be best to remove all Host entries from cd_link_conf.xml; that should let CD Linking generate server-relative URLs (so the entire protocol/host/port discussion becomes irrelevant).

1. If you properly deploy the DXA Web App (incl. CD artifacts such as license file) on your local machine, all the functionality will work.
2. See point 1. Everything should work, also if you are debugging.
3. DXA Link Resolving just builds on CD Link Resolving. I'm not sure if you can suppress port 80 (would indeed makes sense). How does your cd_link_config.xml look?

1. If you properly deploy the DXA Web App (incl. CD artifacts such as license file) on your local machine, all the functionality will work.
2. See point 1. Everything should work, also if you are debugging.
3. DXA Link Resolving just builds on CD Link Resolving. How does your cd_link_conf.xml look?