We do not recommend running Visual Studio and PSoC Creator simultaneously.
This error is specific to Windows as evident from these links:
Some related threads to learn more about why the crash occurs:
We are trying to resolve this issue with Microsoft but right now the not so ideal workaround is to use one IDE at a time.
Thanks for pointing me to the event viewer... it does look like the ucrtbase problem.
But it's unacceptable that this still hasn't been fixed after more than 6 months. We're not talking about an interaction with some obscure application here - PSoC Creator can't be run alongside the most popular Windows IDE. Cypress should be embarrassed this still hasn't been fixed.
We are sorry for the inconvenience caused to you. We have an ongoing interaction with Microsoft to address this issue. I will notify here once the issue has been resolved.