PyCharm runs a flask app but fails to debug it in python3.11

I have multiple python versions on my machine (3.8, 3.9, 3.10 and 3.11) used with different projects. All versions run fine with PyCharm 2023.1.1 except 3.11.
I have a flask-based project which uses 3.11 and it runs fine. Nevertheless, when I try to debug it, the server starts and then throws the following error:

Connected to pydev debugger (build 231.8770.66)
*Serving Flask app 'app'
Debug mode: on
WARNING: This is a development server. Do not use it in a production deployment. Use a production WSGI server instead.
Running on https://127.0.0.1:5001
Press CTRL+C to quit
Restarting with stat
C:\Users\SomeUser\AppData\Local\Microsoft\WindowsApps\PythonSoftwareFoundation.Python.3.11_qbz5n2kfra8p0\python.exe: can't open file 'C:\\Program': [Errno 2] No such file or directory
Process finished with exit code 2

The virtual environment was created by the PyCharm interpreter automatically and it is using python3.11. It also seems that python.exe tries to open a nonexistent folder called Program which I assume is Program Files, but I do not get why.
I tried changing/adding PATHs and PYTHONPATHs. Played with various configuration settings. Installed-reinstalled both python3.11 and PyCharm and so far nothing seems to work.
Any suggestions on what might be causing the issue, before I try an old version of PyCharm?

I tried changing environment variables for python3.11. I tried installing and reinstalling both python3.11 and PyCharm. I tried changing the settings. I enabled the g-event compatibility for the Python Debugger in Pycharm. What I did not try is using an older PyCharm version.

Here is a work-around that fixes the problem for me for Pycharm community edition running on Windows.

Edit the WerkZeug library file: ....\Lib\site-packages\werkzeug_reloader.py at around line 272 in function: def restart_with_reloader(self) just before the call to:
exit_code = subprocess.call(args, env=new_environ, close_fds=False)

Insert this line of code which surrounds every arg that contains a space with a pair of double-quotes:

args = [ f'""{a}""' if ' ' in a else a for a in args ]

So you get:

    def restart_with_reloader(self) -> int:
        """Spawn a new Python interpreter with the same arguments as the
        current one, but running the reloader thread.
        """
        while True:
            _log("info", f" * Restarting with {self.name}")
            args = _get_args_for_reloading()
            new_environ = os.environ.copy()
            new_environ["WERKZEUG_RUN_MAIN"] = "true"

            ## WORK-AROUND FIX ##
            args = [ f'""{a}""' if ' ' in a else a for a in args ]

            exit_code = subprocess.call(args, env=new_environ, close_fds=False)

            if exit_code != 3:
                return exit_code

I got a similar issue after updating my environment. I re-tried with old python 3.10.5 but updated python packages and updated PyCharm. In that case the debugging mode of flask works just fine.

However, when using python 3.11, the flask debugging mode does not work any more. I got the error

FileNotFoundError: [WinError 2] The system cannot find the file specified

The reasons seems to be a bug of python 3.11 regarding sys.executable:

https://github.com/python/cpython/issues/102496

=> Try to temporarily fix the path at the beginning of your main program.

For me following line of code did the trick:

sys.executable = sys.executable.replace('\\App', '\\..\\..\\App')

I tried removing all empty spaces in the path string to PyCharm and this fixes the issue. That is, if I install it in a custom folder for example C:/PyCharm
and rename the PyCharm autogenerated folder PyCharm 2023 to PyCharm_2023 it also works.