Please post the info requested in yellow above so that we can see more clearly what you are trying to do and with which settings enabled.

Upload

Thanks, currently the Arduino definitions do not come with a reliable ICE programmer for upload. We will be releasing a version of visual micro over the comming few days that extends the Arduino programmers list with a full range of programmers. There are also some new tool bar options to make this quick and easy to select.

Debug
You would simply pick the ICE debugger from the Debugger menu or tool bar and also probably set Optimization to "No Project or Libraries"

So for now use normal serial/bootloader upload along alongside ICE debug and enable notifications in the Releases section of this forum so that you get to hear about the new release over next few days.