Chrome localhost cookie not being set

Cookies are designed for second level and down. First level domains will not work. Instead you should use the address http://127.0.0.1 (as you mentioned) or you could edit your hosts file to map a different URL with a TLD to the address 127.0.0.1 such as:

yoursite.tld   127.0.0.1

Just researched this further; found this answer: Cookies on localhost with explicit domain

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