I created a cert using your command (with a dummy externalIP address) and added it to my default web site. I removed the HTTP binding to the site. I tried browsing the site from my main laptop and got the expected certificate warning. But I was able to click on the "proceed at your own risk" warning and the page came up.
Then on the web server (a test Win10 VM) I exported the cert without he private key. Then I followed these instructions to import it into the Trusted Root Certification Authorities on the laptop.
https://www.ntweekly.com/2020/08/31/make-a-self-signed-certificate-trusted-on-windows/
The site then came up just fine with no warnings.
My hosts file has this entry.
192.168.1.2 demomaster
IIS bindings look like this.
Is the time of day clock on all machines correct? Have you double checked to see that your hosts file has the correct IP address?
Check the application and system eventlogs on the server. Also check the IIS logs and the HTTP error logs in C:\Windows\System32\LogFiles\HTTPERR.
Fiddler is doing a "man in the middle" intercept. Try hitting F12 in the browser and select the Network tab and see if that shows anything different (without Fiddler).