Xdebugger socket closes using VSCode, Laravel, Docker

Question

I have a strange behavior with my VSCode debugger. I had to update my docker desktop and it nuked all my containers. after updating,reinstalling and setting up my Laravel containers my XDebug breakpoints only work at the route level ie- the api.php level. I can set breakpoints and all is well...but if I set any breakpoints in any controllers I get "Error:socket hang up" in postman. On chrome the connection closes with error:ERR_EMPTY_RESPONSE in the network inspector and the API call fails. It smells like a timeout somewhere but I cannot find it.

launch.json looks like this:

"configurations": [
  {
      "name": "Listen for Xdebug",
      "type": "php",
      "request": "launch",
      "port": 9003,
      "log":true,
      "pathMappings": {
            "/var/www/html": "${workspaceFolder}"
        },
        "hostname": "0.0.0.0",
  },
  {
      "name": "Launch currently open script",
      "type": "php",
      "request": "launch",
      "program": "${file}",
      "cwd": "${fileDirname}",
      "port": 9003,
  },

]

my php.ini :

[Xdebug]
xdebug.mode=debug
xdebug.start_with_request=yes
xdebug.client_port=9003
xdebug.client_host=127.0.0.1
xdebug.discover_client_host=1
xdebug.var_display_max_depth=10
xdebug.idekey = XDEBUG_VSCODE

I have the XDEbug plugin for chrome running and set the IDEkey to match XDEBUG_VSCODE. I also have the php-debugger plugin running in VSCode. Totally confused.