I contacted the developer about this.
All connections to 127.0.0.1 are allowed by Little Snitch, so all connections to
com.avast.proxy are allowed and there is no way Little Snitch can catch these connections. you have 2 options:
1) Manually block connections to 127.0.0.1 and port 8080 for a certain app. This will overrule the default behaviour of Little Snitch.
2) Switch to
TCPBlock. TCPBlock is donationware and does catch connections to 127.0.0.1. You can download it here:
http://tcpblock.wordpress.com/ With TCPBlock, you can block connection to the
com.avast.proxy so they don't reach the internet.
I did choose the second option. Don't forget to allow any connection for the
com.avast.proxy for Little Snitch or TCPBlock. I hope this will help you with the
web shield and Little Snitch.
I can't answer for the connections avast makes, must be connections for updating the engine?
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Perplexity