Core ssh sftp function doesn't work anymore

Don't know how to solve this issue... has been in a while and drives me nuts.
whenever i try to download something from remote server or upload... it just fails with a status: stoped
a while ago everything worked fine...

Macbook Pro M1
MacOs Sonoma 14.4.1
have Norton Antivirus, but firewall services are disabled
doesn't work in local LAN or when i connect to external servers.

and this happens on all of the hosts... in the logs i see it connects, but after that nothing is happening:

2024/05/04 19:09:23:851  debug1: Server accepts key: /Users/user1/Library/Group Containers/E78WKS7W4U.io.coressh.ssh/.ssh/privatekey/google-cloud RSA SHA256:g4/x0prGZnVdnyzDrv7ntqn8gVqmsNt2UCJ3f8eWzZw explicit
2024/05/04 19:09:23:852  debug1: read_passphrase: requested to askpass
2024/05/04 19:09:24:497  Authenticated to x.x.x.x ([x.x.x.x]:22) using "publickey".
2024/05/04 19:09:24:498  debug1: channel 0: new [client-session]
2024/05/04 19:09:24:498  debug1: Requesting no-more-sessions@openssh.com
2024/05/04 19:09:24:498  debug1: Entering interactive session.
2024/05/04 19:09:24:499  debug1: pledge: filesystem full
2024/05/04 19:09:24:727  debug1: client_input_global_request: rtype hostkeys-00@openssh.com want_reply 0
2024/05/04 19:09:24:727  debug1: client_input_hostkeys: searching /Users/user1/.ssh/known_hosts for x.x.x.x / (none)
2024/05/04 19:09:24:729  debug1: client_input_hostkeys: searching /Users/user1/.ssh/known_hosts2 for x.x.x.x / (none)
2024/05/04 19:09:24:729  debug1: client_input_hostkeys: hostkeys file /Users/user1/.ssh/known_hosts2 does not exist
2024/05/04 19:09:24:729  debug1: client_input_hostkeys: no new or deprecated keys from server
2024/05/04 19:09:24:729  debug1: Remote: /usr/bin/authorized_keys:8: key options: agent-forwarding port-forwarding pty user-rc x11-forwarding
2024/05/04 19:09:24:729  debug1: Remote: /usr/bin/authorized_keys:8: key options: agent-forwarding port-forwarding pty user-rc x11-forwarding
2024/05/04 19:09:24:954  debug1: Sending environment.
2024/05/04 19:09:24:954  debug1: channel 0: setting env LC_CTYPE = "UTF-8"
2024/05/04 19:09:24:955  debug1: Sending subsystem: sftp

and that's it... nothing happens afterwards...
any ideas what to check?

We just released a new version 3.8.4 that have fixed this issue, should be available for upgrade within the next 30 minutes.

Thank you for reporting the issue.

Kindly Regards,

Yang