Breakpoints in default Pawn class are not triggered in Debug mode

When running the editor through VS debug mode, any breakpoint that is set in the class used as the Default pawn class in world settings will be ignored when playing in editor

1. Open UE4Editor (any project)
2. Add code to project based on Pawn (MyPawn)
3. In MyPawn.cpp add a breakpoint to the BeginPlay function
4. Press F5 to run in debug mode.
5. In the editor, create custom game mode blueprint
6. In world settings, set GameMode Override to custom game mode
7. Set Default Pawn Class to MyPawn
8. PIE

Result:
The PIE session will start up and run normally

Expected:
BeginPlay breakpoint is triggered when the pawn is created.

C++ project built against launcher exes does not work with breakpoints