Amazon web services – Cannot access DynamoDB local with lambda function using SAM

To test locally, I am using SAM for my lambda function. And using DynamoDB local. It seems my lambda cannot connect to DynamoDB local

When I run java -Djava.library.path=./DynamoDBLocal_lib -jar DynamoDBLocal.jar -sharedDb command, I get output

Initializing DynamoDB Local with the following configuration:
Port:   8000
InMemory:       false
DbPath: null
SharedDb:       true
shouldDelayTransientStatuses:   false
CorsParams:     null

When I run aws dynamodb list-tables --endpoint-url http://localhost:8000 command, I get output

{
    "TableNames": [
        "User"
    ]
}

Which based on my knowledge, indicates that DynamoDB local is running in http://localhost:8000 and can be accessed through aws-cli

Here’s my template file

AWSTemplateFormatVersion: '2010-09-09'
Transform: AWS::Serverless-2016-10-31
Description: >
  login

  Sample SAM Template for login

# More info about Globals: https://github.com/awslabs/serverless-application-model/blob/master/docs/globals.rst
Globals:
  Function:
    Timeout: 300
    Tracing: Active
  Api:
    TracingEnabled: true
Resources:
  MyLambdaRole:
    Type: AWS::IAM::Role
    Properties:
      RoleName: MyLambdaRole
      AssumeRolePolicyDocument:
        Version: '2012-10-17'
        Statement:
          - Effect: Allow
            Principal:
              Service: lambda.amazonaws.com
            Action: sts:AssumeRole
      Policies:
        - PolicyName: DynamoDBPolicy
          PolicyDocument:
            Version: '2012-10-17'
            Statement:
              - Effect: Allow
                Action:
                  - dynamodb:Query
                  - dynamodb:Scan
                  - dynamodb:GetItem
                  - dynamodb:PutItem
                  - dynamodb:UpdateItem
                  - dynamodb:DeleteItem
                Resource: "arn:aws:dynamodb:localhost:localhost:table/User"
  HelloWorldFunction:
    Type: AWS::Serverless::Function # More info about Function Resource: https://github.com/awslabs/serverless-application-model/blob/master/versions/2016-10-31.md#awsserverlessfunction
    Properties:
      CodeUri: hello-world/
      Handler: app.lambdaHandler
      Runtime: nodejs18.x
      Architectures:
      - x86_64
      Events:
        HelloWorld:
          Type: Api # More info about API Event Source: https://github.com/awslabs/serverless-application-model/blob/master/versions/2016-10-31.md#api
          Properties:
            Path: /hello
            Method: post
      Environment:
        Variables:
          TABLE_NAME: "User"
          DYNAMODB_LOCAL_ENDPOINT: http://localhost:8000
      Role: !GetAtt MyLambdaRole.Arn

Outputs:
  # ServerlessRestApi is an implicit API created out of Events key under Serverless::Function
  # Find out more about other implicit resources you can reference within SAM
  # https://github.com/awslabs/serverless-application-model/blob/master/docs/internals/generated_resources.rst#api
  HelloWorldApi:
    Description: API Gateway endpoint URL for Prod stage for Hello World function
    Value: !Sub "https://${ServerlessRestApi}.execute-api.${AWS::Region}.amazonaws.com/Prod/hello/"
  HelloWorldFunction:
    Description: Hello World Lambda Function ARN
    Value: !GetAtt HelloWorldFunction.Arn
  HelloWorldFunctionIamRole:
    Description: Implicit IAM Role created for Hello World function
    Value: !GetAtt MyLambdaRole.Arn

And here is my lambda function

import AWS from 'aws-sdk';
import bcrypt from 'bcrypt';

export const lambdaHandler = async (event, context) => {
    const dynamoDB = new AWS.DynamoDB.DocumentClient({
        region: 'localhost',
        endpoint: 'http://localhost:8000'
    });
    
    const params = {
        TableName: process.env.TABLE_NAME,
        Select: 'COUNT',
    };
    const result = await dynamoDB.scan(params).promise();
    return result
}

I get the error:

{"errorType": "UnknownEndpoint", "errorMessage": "Inaccessible host: `localhost' at port `8000'. This service may not be available in the `localhost' region.", "trace": ["UnknownEndpoint: Inaccessible host: `localhost' at port `8000'. This service may not be available in the `localhost' region.", "    at Request.ENOTFOUND_ERROR (/var/task/node_modules/aws-sdk/lib/event_listeners.js:611:46)", "    at Request.callListeners (/var/task/node_modules/aws-sdk/lib/sequential_executor.js:106:20)", "    at Request.emit (/var/task/node_modules/aws-sdk/lib/sequential_executor.js:78:10)", "    at Request.emit (/var/task/node_modules/aws-sdk/lib/request.js:686:14)", "    at error (/var/task/node_modules/aws-sdk/lib/event_listeners.js:443:22)", "    at ClientRequest.<anonymous> (/var/task/node_modules/aws-sdk/lib/http/node.js:100:9)", "    at ClientRequest.emit (node:events:517:28)", "    at ClientRequest.emit (node:domain:489:12)", "    at Socket.socketErrorListener (node:_http_client:501:9)", "    at Socket.emit (node:events:517:28)"]}

I am quite stuck here. Not sure what course of action to take from here. Any help would be appreciated