Still experiencing this as of Xcode 12.2 beta 4 (12B5044c). Did anyone find a fix or have anything new to try?

Marry me JChen37. I can't believe that worked. I will say though that some custom shells (in my case, fish) return the debugger to its problematic state even after switching back from bash/zsh. So if you're like me and use iTerm, set the custom shell for your profile only and leave bash/zsh as the system default to please Xcode.