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I'm new to linux, therefore I seeked help. Error message tells me to check my configuration settings for compatibility with drush - I don't know what needs to be done to make them compatible (empty some values, what values?). And there is no example.drush.ini file in my vendor/drush/drush/examples folder.
It turns out that I made a mistake - to anyone who may experience similar strange exceptions: check if in your VS Code when in debug mode under BREAKPOINTS label you don't have the box next to 'Everything' checked - if yes then uncheck it and you should be fine :-)