While following the nextjs doc and Next.js: debug server-side launch configuration for windows, I was also getting same issue while trying to debug server side code. I was able to fix it by removing the --turbopack from the package.json. I was working on nextjs-dashboard sample application which already has this in package.json: https://github.com/vercel/next-learn/tree/main/dashboard/starter-example

Eg.

  "scripts": {
    "build": "next build",
    "dev": "next dev --turbopack",   # remove this --turbopack
    "start": "next start"
  },

I am new to nextjs so don't know what effect does --turbopack creates and why removing it fixed the debugging breakpoint issue. But my gut feeling says that there has to be some fix