I have simple blink sketch - flash the onboard LED R-G-B-W on an ESP32S3 module in turn with delay(1000) statement between each. When the debugger is loaded, and the loop is paused, and I hit "Run Execution to Here" to any point (eg, to previous statement causing one pass through entire loop) the execution appears to ignore any delay() statements it encounters and immediately goes to the pause location. 
Same thing when I run through the loop to a breakpoint. 

Is this a known "feature"? Is it unique to the ESP32?

Simon,
I have attached the build log as requested, with the settings you specified. I have sent a brief video via email, as I can't attach it here. You can see the yellow arrow pointer disappear for a second or so when I hit Continue; the video doesn't capture the very brief LED flash that occurs.
Roman
Addition: I increased the delay to 3000 at each step. If I pause for about 20 seconds, the same brief flash of the LED but the yellow arrow disappears for about longer. If I press continue in a shorter time than about 20 seconds, some of the sequence prior to the breakpoint appears - it's as if the total of the loop delays accumulates anyway while paused, which is weird.