Why NextJS API route can't fetch to Microsoft Azure Cloud Function

When I try to fetch ... , I get an error. The url and port are correct, when I open the url in browser it works fine and gives me response, but when I try to connect to it from API route all breaks.

Error itself

TypeError: fetch failed

at Object.fetch (node:internal/deps/undici/undici:14062:11)

at process.processTicksAndRejections (node:internal/process/task_queues:95:5)

{ cause: Error: connect ECONNREFUSED ::1:7071

at TCPConnectWrap.afterConnect [as oncomplete] (node:net:1487:16) at

TCPConnectWrap.callbackTrampoline (node:internal/async_hooks:130:17) {

errno: -4078,

code: 'ECONNREFUSED',

syscall: 'connect',

address: '::1',

port: 7071 } }

API route

export async function GET(request: Request) {
    try {
        // Connect to mcrft azure func endpoint
        const response = await fetch(
            `${process.env.VERCEL_URL || "http://localhost:7071"
            }/api/getChatGPTSuggestion`,
            {
                cache: "no-store",
            }
        );

        const textData = await response.text();

        return new Response(JSON.stringify(textData.trim()), {
            status: 200,
        });
    } catch (error) {
        console.log("error inside get route", error)
        if (error instanceof Error) {
            return new Response(error.message, { status: 500 });
        }

        return new Response("Internal Server Error", { status: 500 });
    }
}

Cloud function

const { app } = require('@azure/functions')
const openai = require('../../lib/openai')

app.http('getChatGPTSuggestion', {
  methods: ['GET'],
  authLevel: 'anonymous',
  handler: async (request, context) => {
    const response = await openai.createCompletion({
      model: 'text-davinci-003',
      prompt:
        '...',
      max_tokens: 100, 
      temperature: 0.8,
    })

    context.log(`Http function processed request for url "${request.url}"`)

    const responseText = response.data.choices[0].text

    return {
      body: responseText,
    }
  },
})