PHP problem on localhost | WordPress.org

Hello,
I have a weird technical problem, I’ve lokked and serached and found nothing that helps me.

I’m trying to work on localhost, I was running the website (which is still empty of my own content) until yesterday morning with another theme, on a Mac with Mamp and local installation of wp, all was fine. Then I purchased a new theme and first I had problems with importing the demo content, which was solved by Bluehost changing some php setting on the server, not entirely sure what, something to do with php7. Now the website with full demo is running fine on https://alicebensi.photography

I then proceeded moving it all to localhost, I actually
-wiped everything out from previous installation,
-reinstalled mamp
-created a new localhost database
-exported my database from bluehost
-downloaded the zipped folder of my wordpress website
-imported db in local (changing the names from alicebensi.photography to localhost)
-copied the website folder in the htdocs one of Mamp where my localhost is etc.
All of this I have successfully done before… but now it’s not working: when I try to navigate to http://localhost, which runs index.php, the page gets downloaded by the browser instead of loading.
The content is there… it’s the code not being interpreted?
I’m really not sure what to make of this, being pretty ignorant about the topic.

I’ve found a few threads about this issue searching around, but none of the help I could get solved the problem.
At some point I followed instructions to removing the AddHandler line from the .htaccess file and that allowed me to see my homepage and whole website on localhost BUT when trying to access localhost/wp-admin, that was getting downloaded again. I could get to the login form on localhost/wp-login.php BUT when pressing the login button… my dashboard was downloaded as a text file! I’m very confused.
Bluehost couldn’t help after long chat. I hope you guys can!Please!

Thank you
Alice

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