Breakpoints not working on Pi Pico/ Pi Pico 2

[MarcA711]

Steps to reproduce

I build the rp/wifi_blinky.rs and rp235x/blinky_wifi.rs examples using cargo build --bin wifi_blinky --release . I then try to debug the program in VS Code with this launch.json:

{
    "version": "0.2.0",
    "configurations": [
        {
            "type": "probe-rs-debug",
            "request": "launch",
            "name": "probe-rs Test",
            "cwd": "${workspaceFolder}",
            // "connectUnderReset": true,
            // "chip": "RP235x",
            "chip": "RP2040",
            "flashingConfig": {
                "flashingEnabled": true,
                "haltAfterReset": true
            },
            "coreConfigs": [
                {
                    "coreIndex": 0,
                    "programBinary": "./examples/rp/target/thumbv6m-none-eabi/release/wifi_blinky"
                }
            ]
        }
    ]
}

Flashing works and the debugger starts. Also, the debugger halts the execution right after the beginning. After I continue the program execution, the LED starts blinking.
Now I set a breakpoint in one of the lines within the loop using VS Code:

embassy/examples/rp/src/bin/wifi_blinky.rs

Lines 70 to 76 in 61797d5

	info!("led on!");
	control.gpio_set(0, true).await;
	Timer::after(delay).await;
	info!("led off!");
	control.gpio_set(0, false).await;
	Timer::after(delay).await;

However, the execution does not halt.

When I manually set a breakpoint in the loop using cortex_m::asm::bkpt(); the code execution halts but VS Code opens the file /usr/local/cargo/registry/src/index.crates.io-1949cf8c6b5b557f/cortex-m-0.7.7/asm/inline.rs and marks the line

    asm!("bkpt", options(nomem, nostack, preserves_flags));

as being currently executed rather than the corresponding line in the wifi_blinky.rs file.

1. When I use a STM32H743 (also connected to the picoprobe) and the corresponding blinky example, everything works as expected.
2. When I build a binary using the Pico C/C++ SDK and flash is using probe-rs, everything works as expected as well.

That's why I think that the problem is the binary and debug info produced by Rust/ embassy-rs rather than the picoprobe or probe-rs.

What I have also tried:

1. Switch to the nightly toolchain.
2. Modifying the [profile.release] section of the Cargo.toml to:

[profile.release]
codegen-units = 1
debug = 2
debug-assertions = false
incremental = false
lto = 'fat'
opt-level = 3
overflow-checks = false