I have a list on rateyourmusic.com
https://rateyourmusic.com/list/SoundscapeMN/music_from_minnesotaI'd say it varies, but some of my favorite music is being made here in my hometown. What is really sad and pathetic though is how unknown some of the legendary people here are, but only in Minnesota.
Dean Magraw, I'll argue to anyone is as talented and eclectic a musician, really, in the history of modern music (the last 40 or 50 years). But he's best known, and in a lot of ways, best experienced LIVE.
Lehto & Wright released my 2nd favorite album from 2010 in "Children's Songs" a progressive (folk) rock masterpiece of sorts.
Cloud Cult have a catalog that could/should rival Porcupine Tree
Greg Herriges is in a lot of ways carrying on what Dean Magraw has done, in molding a number of styles (folk, acoustic, ethnic, rock, prog) to make his own. But like Dean, Greg is probably even greater live.
As far as what is POPULAR in Minnesota, it's primarily the Hip-Hop scene and for some reason, the Punk scene. Doomtree artists (P.O.S., Atmosphere, Brother Ali, Eyedea and Abilities.
Of course Minnesota is known for
Prince, Johnny Lang, and even
Bob Dylan. But also groups like
The Replacements and
Husker Du. More recently,
Low, Tapes N Tapes, Motion City Soundtrack and a few other College Rock groups have become known outside of this place.