Since you use a locally virtualized Storage Emulator, then your Connecting String is correct.
If your firewall restricts func from accessing the Storage Account, then this error may be reported. The firewall is one of the reasons that the listener cannot access the virtual Storage Emulator.
When running the function locally, all triggers except httptrigger need to use the Storage Emulator. If the firewall restricts the listener's access to virtual storage, problems can occur when performing functions.
Try disabling the firewall and see if that resolves the issue.
Of course, it is also possible that the Storage Emulator service is not open. Try typing
"%programfiles(x86)%\Microsoft SDKs\Azure\Storage Emulator\AzureStorageEmulator.exe" status
in cmd to check the status.
If it returns false, enter the following command to start the Storage Emulator:
"%programfiles(x86)%\Microsoft SDKs\Azure\Storage Emulator\AzureStorageEmulator.exe" init
"%programfiles(x86)%\Microsoft SDKs\Azure\Storage Emulator\AzureStorageEmulator.exe" start
To sum up:
This type of problem is generally for three reasons.
1.Connection string error prevents connection,
2.firewall is set
3.some services are not turned on.
Have a look of the doc:
https://learn.microsoft.com/en-us/azure/storage/common/storage-use-emulator#start-and-initialize-the-storage-emulator
https://learn.microsoft.com/en-us/azure/storage/common/storage-use-emulator#storage-emulator-command-line-tool-reference