My setup:
Mac OS 11.5.2
Vs Code 1.60.2
nRF Connect SDK 1.7.0
nRF52840DK
Using the tutorial videos provided I went through the process of creating the basic blinky sample. I can build, erase and flash and the code appears to work.
When I click on the Debug button bottom left from the nRF Connect pane, the debugger stops in a file called fatal.c sometimes, and at other times stops in reset.S or cpu_idle.S.
However, if I then click the stop button (small red square in debugger controller), and then the Run and Debug button that appears afterwards, it sometimes works just fine and I can step through the source code.
If I try the samples/bluetooth/peripheral_lbs application, it debugs directly from the nRF Connect pane without difficulty and breaks at the beginning of the main function.