VSCode debug configs

I’m trying to get one of the published extension examples to work in a dev env. It installs, compiles and deploys successfully, but I keep failing to get it to run in VSCode debug mode. The goal is to be able to step through code, stop a breakpoints, etc.

I tried every published configurations I can find with no success. I tried this cookiecutter template: GitHub - jupyterlab/debug-config-cookiecutter: A cookiecutter template for creating the IDE config
It runs in debug mode but does not stop at breakpoints or step through code line by line. When I tried to change the config settings to point a specific file, it fails with the same error I got from previous deployment (can run import or export outside a module…).

Can anyone please help and share a template or a set of configurations that allow me to run jupyterlab extension code in VSCode debug mode (breakpoints, step through code, etc.)?