This error is one we really don't understand.
When you see a connection with Simconnect being made, it means the program started and connected to the sim, and now it's waiting for the sim itself to reply, which in your case just doesn't come, so the program can't go ahead, because is still waiting for the sim to call it back.
It might be possibly related to permission issues, try to run the Coautl program as adminstrator, see if there's any change.
It might be related to the antivirus, since the Simconnect connection is similar to a file connection, without a file, you can try adding the whole Addon Manager to the antivirus Exclusions
It might be possibly related to the configuration of the Simconnect.XML found in the MSFS settings folder
MS Store version:
%LOCALAPPADTA%\Local\Packages\Microsoft.FlightSimulator_8wekyb3d8bbwe\LocalCache\Simconnect.xml
Steam version
%APPDATA%\Microsoft FlightSimulator\Simconnect.xml
Do you recall ever changing this file settings ? Maybe to use an add-on that runs over a network ?