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Yes, I can confirm this bug. Looks like they changed something in the 1.2 version of Mbed Studio that caused this. From the interaction link you posted, looks like they are already working on a fix and it should be in the mainline soon.
I will update the thread so that you get to know when the fix is added.
The issue with Cypress targets not getting detected has been fixed in the latest release of PyOCD v0.28.0 now. Please upgrade your PyOCD using the pip installer using the command:
>> pip install -U pyocd
Now open Mbed Studio and connect your kit in DAPLink mode, you should be able to see the Debug button now available
Let me know your observations