Connecting to remote server failed: The target is not running

Linux Ubuntu 22.04, macOS 13 (intel), Windows 10
Qt Creator 16.0.0 rc1, Qt Creator 17 snapshot

Steps to reproduce:

Install Boot to Qt 6.8.2 toolchain and image and setup the device.

Open a Quick application

From Projects -> Build Settings select 'Enable' from 'QML debugging and profiling'

Set a QML breakpoint

Build and start debugger

Expected result: Debugger launches and stops at the breakpoint

Actual result: Randomly I see a dialog 'Connecting to remote server failed: The target is not running'. If I run the device test from Preferences -> Devices tab it passes without issues. This seems to be either random or happening when you start debugging QML application for the first time. Rebooting the device, relaunching the QtCreator might fix the issue.

See the screenshot attached.