How to debug a JupyterDash app using VSCode?

This is going to be a self-answered post, but that only means that I've got an idea of a solution, and that I'm very eager to hear about more efficient and stable approaches to the challenge in question.

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I would like to know how you can combine the powers of JupyterDash and VSCode in order to run a debugging process for an .ipynb file that involves all of the following steps:

1. stepping into code,

2. running code line by line,

3. inspecting variables,

4. setting breakpoints,

5. inspecting callbacks, and

6. interactively editing variables.

I believe I've tried every imaginable combination of:

• Step into code with F10
• Run > Start Debugging (F5) from the VSCode menu
• Run and Debug (ctrl+Shift+D) from the Jupyter Notebook menu
• Inspecting variables through JUPYTER:VARIABLES in the VSCode Debug Console

Still I don't feel I've found a work-flow that is 100% satisfactory when it comes to interactivity and stability.

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System info:

Python 3.9.6
VScode 1.60.2
Plotly 5.1.0
JupyterDash 0.4.0

from How to debug a JupyterDash app using VSCode?