QUrl::QUrl() expects a full Url including the scheme (unlike KUrl::KUrl() that supports local paths too).
But for local files, urlString contains the local path without a scheme ("file://").
The problem here is that QUrl cannot detect that the Url is actually pointing to a local file if the scheme is missing (according to the Qt docs, a URL is a local file path if the scheme is "file"), so QUrl::isLocalFile() was always false and the "Open in filemanager" button never got enabled.
So use QUrl::fromUserInput() instead to construct the QUrl, which also supports local paths.
Also, to avoid showing the "file://" scheme in the "Location" text field now, pass QUrl::PreferLocalFile to QUrl::toDisplayString() as suggested in the KUrl::pathOrUrl() docs.