(Updated this post) During an activity, distance stops updating, while the map page on the watch still correctly updates the position (blue arrow), but does no longer draw the track.
Afterwards the data in the FIT file contains correct data (GPS positions are all logged, none missing, speed, cadence, heart rate, temperature, running power etc also OK) except for the part of the activity where the distance stops updating; the same value repeats in the Distance field until the end of the activity.
Hoping to hear from others if they ever saw the same thing, just to rule out a hardware issue.