Thanks for the answers, the problem is upstream in bracket-lib, it seems to be broken on Wayland environments at the moment as mentioned in the link from Ry- & user2722968 (https://github.com/amethyst/bracket-lib/issues/362)

I was able to workaround the issue with the workaround mention in the bug report, via using X11 instead of Wayland: WINIT_UNIX_BACKEND=x11 cargo run

For using the workaround in VSCode I edited the launch.json and added the environment variable to it:

"env": {
    "WINIT_UNIX_BACKEND": "x11"
}