irm-codebase mentioned this on Jul 14 Debugger 'hangs' when working with pixi environments microsoft/vscode-python-debugger#741 ...

This should be a bug in the vscode-python-debugger extension. It needs to wrap the command line arguments in quotes (debugpy can't guess that the space is from a directory) Transferring issue.

Microsoft is rolling out a new Python Environments extension in VS Code, now reaching 20% of stable channel users. The tool ...

There are also a total of 66 fixes in this update to the Python extension for VS Code. Microsoft also highlighted that the Python debugger supports the Jump to Cursor feature.