The hot reload doesn’t work if you launch your app using f5 or select start debugging from the dropdown of debug .
But if you launch your app using Ctrl+f5 or select start without debugging from the dropdown of debug .
To solve the issue first close the running debugging session using Shift+f5.
Then click debug from the menu bar. Click Start without debugging.

Now The Hot reload works perfectly fine.
You can do the hot reload also using terminal.
Just type: flutter run in the terminal and the app will be launched.
just press r in the terminal and hot reload will be initialized.