The CYBLE-202007 module has an external Power Amplifier. It is mandatory to enable this PA, else the radio transmission will only be due to leakage and the range will just be a few centimeters. You can do either of this to confirm:
1) Keep the two BLE devices (CYBLE-202007 module and the peer device) very close to each other, i.e. just a few centimeters apart. You should see that there will be issue with finding/connecting to the device
2) Enable the PA and you should not see the issues.
The problem is solved!
You have to add:
CY_SET_XTND_REG32((void CYFAR *)(CYREG_BLE_BLERD_BB_XO_CAPTRIM), 0x0000D0D0);
in CYBLE_EVT_STACK_ON case!