Browsers are set up with security measures to make sure that ordinary users won't be at increased risk. Imagine that I'm a malicious website and I have you download something to your filesystem that looks, to you, like a regular website. Imagine that downloaded HTML can access other parts of your file system and then send that data to me through AJAX or perhaps another piece of executable code on the filesystem that came with this package. To a regular user this might look like a regular website that just "opened up a little weird but I still got it to work." If the browser prevents that, they're safer.
It's possible to turn these flags off (as in here: How to launch html using Chrome at "--allow-file-access-from-files" mode?), but that's more for knowledgeable users ("power users"), and probably comes with some kind of warning about how your browsing session isn't secure.
For the kind of scenarios you're talking about, you should be able to spin up a local HTTP server of some sort - perhaps using Python, Ruby, or node.js (I imagine node.js would be an attractive option for testing javascript base apps).