VSCode and RC3 fails to "Serve to the browser (ionic serve)" with timeout

RC0 main upgrade steps seems to have taking me to RC3, which is great :slight_smile:
I have not yet copied my app file to the v2 project.
CLI ionic server works fine on the newly created v2 project.
Yesterday, before the upgrade, while under 2.0.0.beta11 VSCode debugging was working fine launching a separate window of chrome.
BUT now, VSCode fails debugging into the browser with this notorious timeout error

I even tried 420000 no difference

            "name": "Serve to the browser (ionic serve)",
            "type": "cordova",
            "request": "launch",
            "platform": "serve",
            "cwd": "${workspaceRoot}",
            "devServerAddress": "localhost",
            "sourceMaps": true,
            "ionicLiveReload": true
            , "devServerTimeout" : 420000
            , "port": 9222

here is my package.json

 "dependencies": {
    "@angular/common": "2.1.1",
    "@angular/compiler": "2.1.1",
    "@angular/compiler-cli": "2.1.1",
    "@angular/core": "2.1.1",
    "@angular/forms": "2.1.1",
    "@angular/http": "2.1.1",
    "@angular/platform-browser": "2.1.1",
    "@angular/platform-browser-dynamic": "2.1.1",
    "@angular/platform-server": "2.1.1",
    "@ionic/app-scripts": "0.0.46",
    "@ionic/storage": "1.1.6",
    "ionic-angular": "2.0.0-rc.3",
    "ionic-native": "2.2.3",
    "ionicons": "3.0.0",
    "rxjs": "5.0.0-beta.12",
    "zone.js": "0.6.26"
  "devDependencies": {
    "@ionic/app-scripts": "0.0.46",
    "typescript": "^2.0.10"

ionic info

Your system information:

 ordova CLI: 6.4.0
Ionic Framework Version: 2.0.0-rc.3
Ionic CLI Version: 2.1.14
Ionic App Lib Version: 2.1.7
Ionic App Scripts Version: 0.0.46
ios-deploy version: Not installed
ios-sim version: Not installed
OS: Windows 7
Node Version: v7.2.0
Xcode version: Not installed

npm -v
Windows 7 64bit.

node processes when run from CLI

node processes when run from VSCode

Just wondering if --nobrowser arg is the right thing from VSCode launching node??

How can I fix this timeout issue? and get back to debugging from VSCode
Thank you.