Awesome, glad you got it sorted... I was going to say that it looked like either the port was closed, or that your bitcoind wasn't configured to accept incoming RPC connections. The "-server" part is probably what fixed it if you didn't already have that in bitcoin.conf

One more piece of advice... if you see errors when trying to connect using Electrum. It might be because, as far as I'm aware,
electrs still doesn't support direct SSL connections, you need to use a proxy... and Electrum tries to use it by default.
So, I created an "Electrum - Local" shortcut within Windows... that runs as follows:
"C:\Program Files (x86)\Electrum\electrum-3.3.8.exe" --oneserver --server localhost:50001:t
It prevents my Electrum from connecting to anything other than my local server (--oneserver)... and it specifies that it should just use ordinary "tcp" connection... that's the "t" part on the end of the server spec.
Not having SSL isn't a huge deal for me, because this is a "personal" server, so it's all internal communication. If I was going to open this for external connections (if I wanted to be able to use Electrum from my Android phone for instance), then I'd investigate setting up the SSL stuff.
EDIT:Ok, so mentioning SSL got me curious about how hard it was to setup... the answer is... Not very

I installed the prebuilt NGINX using
apt-get as outlined
here, created some SSL self-signed certs using
openssl as outlined
here (I just changed "apache-selfsigned" to "nginx-selfsigned" for the .key and .crt)... and then added the NGINX .conf changes as specified
in the electrs docsStarted up NGINX, then connected using Electrum with a new SSL shortcut:
"C:\Program Files (x86)\Electrum\electrum-3.3.8.exe" --oneserver --server localhost:50002:s
et voilà... Electrum running using SSL... at some point, I
might attempt to make this externally accessible, so I could connect from external networks. But for a "proof of concept" it was pretty easy to do.
GREAT WORK. I also run it with localhost:50001:t so far, will try your ngix ssl solution soon.
The main reason I wanted all this with running my personal electrs etc., was to be able to use Python to create multiple wallets automatically and work with them fast, thus the private server. Normal Electrum wallet GUI starts normally and connects to localhost just fine, without any issues.
It all works fine now, I get much better speed in my project than with the public electrum servers, but there is an issue that I am 99% certain is not related to my Python programming on Electrum but it must have to do with Electrs server.
What happens is, I get (in electrs) errors like " failed to send PeriodicUpdate to peer 81: sending on a full channel" and I can see that electrs keeps disconnecting my connections to it from different wallets. It appears that there must be some more arguments that could probably help my wallets not disconnecting the way they do in electrs.
Do you know if there are, and what are they, more arguments for electrs when it starts? Like timeout args or similar?
------UPDATE------
Hi HCP, I managed to fix everything, without SSL yet, this I will try soon. electrs works fine and what was wrong was in the Python script. Thank you for your help, as it saved a lot of time and effort.
P.S. I tried porting the WSL to another system but not everything was as it should be even though the import-export works, the ported WSL wasn't starting in the same user (now it was root by default) and things like that. I just reinstalled everything to the other computer in a new WSL just to be sure.