debugger stopped working: doesn't stop in breakpoints

CIQ SDK: 4.1.3
VScode: 1.67.2
Monkey C plugin: v1.0.5

I'm trying to debug my app, and today it stopped working. I did manage to debug half an hour ago, and I did not install any new thing since, only edited my code.

When I start my app with debugging I get the following output in debug console:

Hit breakpoint 7, computeExtHR () at ExtHRMField.mc:135
Kill app for get stack backtrace
computeExtHR
Failed to get stack backtrace: Timeout
No app is loaded. Try "help file".

This is the code in ExtHRMField.mc:135 and I have a breakpoint on it:

System.println("computeExtHR");

So it does notice the breakpoint, but it does not pause the execution on the line, instead it kills the app, and even more interestingly it does still execute the line after it killed itself. And then it dies.
In the simulator I did: Kill App, Kill Device, Reset All App Data, Delete All Apps, then stopped simulator
Stopped VSC
Started VSC
Build Current Project
Run > Start debugging
And it's still the same...