peripheral_hr - BLE_HCI_CONNECTION_TIMEOUT within very short range

Hi,

I've connected in BLE two devices

- NRF52840 DK as "central", connected to PC via nRF Connect For Desktop v3.11.0 -> Bluetooth Low Energy v3.0.1
- NRF5340 based custom board as "peripheral", flashed with rebuilt NCS 1.8.0 sample application /ncs\v1.8.0\zephyr\samples\bluetooth\peripheral_hr

The peripheral prj settings are the default ones:

CONFIG_BT=y
CONFIG_BT_DEBUG_LOG=y
CONFIG_BT_SMP=y
CONFIG_BT_PERIPHERAL=y
CONFIG_BT_DIS=y
CONFIG_BT_DIS_PNP=n
CONFIG_BT_BAS=y
CONFIG_BT_HRS=y
CONFIG_BT_DEVICE_NAME="Zephyr Heartrate Sensor"
CONFIG_BT_DEVICE_APPEARANCE=833

After successful connection and data exchange I experience disconnection as soon as I move the peripheral few meters apart from the central.
These are the logs gathered at both sides

Peripheral Log (Serial UART0):
----------------------------------------------------------------------------------------------------
*** Booting Zephyr OS build v2.7.0-ncs1 ***
Bluetooth initialized
Advertising successfully started
[00:00:00.399,475] <inf> bt_hci_core: HW Platform: Nordic Semiconductor (0x0002)
[00:00:00.399,505] <inf> bt_hci_core: HW Variant: nRF53x (0x0003)
[00:00:00.399,505] <inf> bt_hci_core: Firmware: Standard Bluetooth controller (0x00) Version 223.20160 Build 1719410646
[00:00:00.403,045] <inf> bt_hci_core: Identity: DD:3D:A7:57:58:6C (random)
[00:00:00.403,045] <inf> bt_hci_core: HCI: version 5.2 (0x0b) revision 0x22b0, manufacturer 0x0059
[00:00:00.403,045] <inf> bt_hci_core: LMP: version 5.2 (0x0b) subver 0x22b0
Connected
[00:00:36.132,049] <inf> hrs: HRS notifications enabled
[00:01:04.720,428] <inf> bas: BAS Notifications enabled

Central Log (Bluetooth Low Energy v3.0.1):
----------------------------------------------------------------------------------------------------
16:33:50.653 Connecting to device
16:33:50.702 Connected to device DD:3D:A7:57:58:6C: interval: 7.5ms, timeout: 4000ms, latency: 0
16:33:50.790 Phy updated for device DD:3D:A7:57:58:6C, tx: 2 Mb/s, rx: 2 Mb/s
16:33:51.000 Attribute value read, handle: 0x0B, value (0x): 5A-65-70-68-79-72-20-48-65-61-72-74-72-61-74-65-20-53-65-6E-73-6F-72
16:33:55.757 Connection parameters updated for device DD:3D:A7:57:58:6C: interval 30ms, timeout 420ms, latency: 0
16:33:58.400 Attribute value changed, handle: 0x1C, value (0x): 01-00
16:33:58.410 Attribute value written, handle: 0x1C, value (0x): 01-00
16:33:58.699 Attribute value changed, handle: 0x1B, value (0x): 06-7E
16:33:59.660 Attribute value changed, handle: 0x1B, value (0x): 06-7F
16:34:00.680 Attribute value changed, handle: 0x1B, value (0x): 06-80
16:34:01.670 Attribute value changed, handle: 0x1B, value (0x): 06-81
16:34:02.659 Attribute value changed, handle: 0x1B, value (0x): 06-82
16:34:03.681 Attribute value changed, handle: 0x1B, value (0x): 06-83
16:34:04.670 Attribute value changed, handle: 0x1B, value (0x): 06-84
16:34:05.660 Attribute value changed, handle: 0x1B, value (0x): 06-85
16:34:06.680 Attribute value changed, handle: 0x1B, value (0x): 06-86
16:34:07.670 Attribute value changed, handle: 0x1B, value (0x): 06-87
16:34:08.660 Attribute value changed, handle: 0x1B, value (0x): 06-88
16:34:09.680 Attribute value changed, handle: 0x1B, value (0x): 06-89
16:34:10.670 Attribute value changed, handle: 0x1B, value (0x): 06-8A
16:34:11.660 Attribute value changed, handle: 0x1B, value (0x): 06-8B
16:34:12.680 Attribute value changed, handle: 0x1B, value (0x): 06-8C
16:34:13.670 Attribute value changed, handle: 0x1B, value (0x): 06-8D
16:34:14.660 Attribute value changed, handle: 0x1B, value (0x): 06-8E
16:34:15.680 Attribute value changed, handle: 0x1B, value (0x): 06-8F
16:34:16.670 Attribute value changed, handle: 0x1B, value (0x): 06-90
16:34:17.301 Attribute value read, handle: 0x16, value (0x): 6E-52-46-35-33-34-30-5F-43-50-55-41-50-50-5F-51-4B-41-41
16:34:17.660 Attribute value changed, handle: 0x1B, value (0x): 06-91
16:34:18.681 Attribute value changed, handle: 0x1B, value (0x): 06-92
16:34:19.670 Attribute value changed, handle: 0x1B, value (0x): 06-93
16:34:20.361 Attribute value read, handle: 0x18, value (0x): 4D-61-6E-75-66-61-63-74-75-72-65-72
16:34:20.690 Attribute value changed, handle: 0x1B, value (0x): 06-94
16:34:21.680 Attribute value changed, handle: 0x1B, value (0x): 06-95
16:34:22.462 Attribute value read, handle: 0x18, value (0x): 4D-61-6E-75-66-61-63-74-75-72-65-72
16:34:22.680 Attribute value changed, handle: 0x1B, value (0x): 06-96
16:34:23.707 Attribute value changed, handle: 0x1B, value (0x): 06-97
16:34:24.691 Attribute value changed, handle: 0x1B, value (0x): 06-98
16:34:25.670 Attribute value changed, handle: 0x1B, value (0x): 06-99
16:34:26.770 Attribute value changed, handle: 0x1B, value (0x): 06-9A
16:34:27.025 Attribute value changed, handle: 0x13, value (0x): 01-00
16:34:27.026 Attribute value written, handle: 0x13, value (0x): 01-00
16:34:27.711 Attribute value changed, handle: 0x1B, value (0x): 06-9B
16:34:27.726 Attribute value changed, handle: 0x12, value (0x): 23
16:34:28.700 Attribute value changed, handle: 0x1B, value (0x): 06-9C
16:34:28.715 Attribute value changed, handle: 0x12, value (0x): 22
16:34:29.720 Attribute value changed, handle: 0x1B, value (0x): 06-9D
16:34:29.735 Attribute value changed, handle: 0x12, value (0x): 21
16:34:30.680 Attribute value changed, handle: 0x1B, value (0x): 06-9E
16:34:30.695 Attribute value changed, handle: 0x12, value (0x): 20
16:34:31.670 Attribute value changed, handle: 0x1B, value (0x): 06-9F
16:34:31.681 Attribute value changed, handle: 0x12, value (0x): 1F
16:34:32.690 Attribute value changed, handle: 0x1B, value (0x): 06-5A
16:34:32.706 Attribute value changed, handle: 0x12, value (0x): 1E
16:34:33.680 Attribute value changed, handle: 0x1B, value (0x): 06-5B
16:34:33.693 Attribute value changed, handle: 0x12, value (0x): 1D
16:34:34.670 Attribute value changed, handle: 0x1B, value (0x): 06-5C
16:34:34.683 Attribute value changed, handle: 0x12, value (0x): 1C
16:34:35.690 Attribute value changed, handle: 0x1B, value (0x): 06-5D
16:34:35.705 Attribute value changed, handle: 0x12, value (0x): 1B
16:34:36.682 Attribute value changed, handle: 0x1B, value (0x): 06-5E
16:34:36.697 Attribute value changed, handle: 0x12, value (0x): 1A
16:34:37.670 Attribute value changed, handle: 0x1B, value (0x): 06-5F
16:34:37.684 Attribute value changed, handle: 0x12, value (0x): 19
16:34:38.690 Attribute value changed, handle: 0x1B, value (0x): 06-60
16:34:38.704 Attribute value changed, handle: 0x12, value (0x): 18
16:34:39.680 Attribute value changed, handle: 0x1B, value (0x): 06-61
16:34:39.696 Attribute value changed, handle: 0x12, value (0x): 17
16:34:40.670 Attribute value changed, handle: 0x1B, value (0x): 06-62
16:34:40.681 Attribute value changed, handle: 0x12, value (0x): 16
16:34:41.720 Attribute value changed, handle: 0x1B, value (0x): 06-63
16:34:41.732 Attribute value changed, handle: 0x12, value (0x): 15
16:34:42.680 Attribute value changed, handle: 0x1B, value (0x): 06-64
16:34:42.694 Attribute value changed, handle: 0x12, value (0x): 14
16:34:43.670 Attribute value changed, handle: 0x1B, value (0x): 06-65
16:34:43.683 Attribute value changed, handle: 0x12, value (0x): 13
16:34:44.691 Attribute value changed, handle: 0x1B, value (0x): 06-66
16:34:44.701 Attribute value changed, handle: 0x12, value (0x): 12
16:34:45.680 Attribute value changed, handle: 0x1B, value (0x): 06-67
16:34:45.694 Attribute value changed, handle: 0x12, value (0x): 11
16:34:46.670 Attribute value changed, handle: 0x1B, value (0x): 06-68
16:34:46.700 Attribute value changed, handle: 0x12, value (0x): 10
16:34:47.690 Attribute value changed, handle: 0x1B, value (0x): 06-69
16:34:47.704 Attribute value changed, handle: 0x12, value (0x): 0F
16:34:48.710 Attribute value changed, handle: 0x1B, value (0x): 06-6A
16:34:48.724 Attribute value changed, handle: 0x12, value (0x): 0E
16:34:49.700 Attribute value changed, handle: 0x1B, value (0x): 06-6B
16:34:49.713 Attribute value changed, handle: 0x12, value (0x): 0D
16:34:50.690 Attribute value changed, handle: 0x1B, value (0x): 06-6C
16:34:50.706 Attribute value changed, handle: 0x12, value (0x): 0C
16:34:51.681 Attribute value changed, handle: 0x1B, value (0x): 06-6D
16:34:51.692 Attribute value changed, handle: 0x12, value (0x): 0B
16:34:52.700 Attribute value changed, handle: 0x1B, value (0x): 06-6E
16:34:52.711 Attribute value changed, handle: 0x12, value (0x): 0A
16:34:53.690 Attribute value changed, handle: 0x1B, value (0x): 06-6F
16:34:53.704 Attribute value changed, handle: 0x12, value (0x): 09
16:34:54.682 Attribute value changed, handle: 0x1B, value (0x): 06-70
16:34:54.695 Attribute value changed, handle: 0x12, value (0x): 08
16:34:55.730 Attribute value changed, handle: 0x1B, value (0x): 06-71
16:34:55.760 Attribute value changed, handle: 0x12, value (0x): 07
16:34:56.690 Attribute value changed, handle: 0x1B, value (0x): 06-72
16:34:56.705 Attribute value changed, handle: 0x12, value (0x): 06
16:34:57.710 Attribute value changed, handle: 0x1B, value (0x): 06-73
16:34:57.723 Attribute value changed, handle: 0x12, value (0x): 05
16:34:58.700 Attribute value changed, handle: 0x1B, value (0x): 06-74
16:34:58.714 Attribute value changed, handle: 0x12, value (0x): 04
16:34:59.690 Attribute value changed, handle: 0x1B, value (0x): 06-75
16:34:59.702 Attribute value changed, handle: 0x12, value (0x): 03
16:35:00.741 Attribute value changed, handle: 0x1B, value (0x): 06-76
16:35:00.751 Attribute value changed, handle: 0x12, value (0x): 02
16:35:01.730 Attribute value changed, handle: 0x1B, value (0x): 06-77
16:35:01.744 Attribute value changed, handle: 0x12, value (0x): 01
16:35:02.720 Attribute value changed, handle: 0x1B, value (0x): 06-78
16:35:02.734 Attribute value changed, handle: 0x12, value (0x): 64
16:35:03.711 Attribute value changed, handle: 0x1B, value (0x): 06-79
16:35:03.721 Attribute value changed, handle: 0x12, value (0x): 63
16:35:04.700 Attribute value changed, handle: 0x1B, value (0x): 06-7A
16:35:04.714 Attribute value changed, handle: 0x12, value (0x): 62
16:35:05.691 Attribute value changed, handle: 0x1B, value (0x): 06-7B
16:35:05.706 Attribute value changed, handle: 0x12, value (0x): 61
16:35:06.740 Attribute value changed, handle: 0x1B, value (0x): 06-7C
16:35:06.754 Attribute value changed, handle: 0x12, value (0x): 60
16:35:07.701 Attribute value changed, handle: 0x1B, value (0x): 06-7D
16:35:07.714 Attribute value changed, handle: 0x12, value (0x): 5F
16:35:08.720 Attribute value changed, handle: 0x1B, value (0x): 06-7E
16:35:08.737 Attribute value changed, handle: 0x12, value (0x): 5E
16:35:09.681 Attribute value changed, handle: 0x1B, value (0x): 06-7F
16:35:09.692 Attribute value changed, handle: 0x12, value (0x): 5D
16:35:10.701 Attribute value changed, handle: 0x1B, value (0x): 06-80
16:35:10.712 Attribute value changed, handle: 0x12, value (0x): 5C
16:35:11.691 Attribute value changed, handle: 0x1B, value (0x): 06-81
16:35:11.706 Attribute value changed, handle: 0x12, value (0x): 5B
16:35:12.681 Attribute value changed, handle: 0x1B, value (0x): 06-82
16:35:12.694 Attribute value changed, handle: 0x12, value (0x): 5A
16:35:13.702 Attribute value changed, handle: 0x1B, value (0x): 06-83
16:35:13.712 Attribute value changed, handle: 0x12, value (0x): 59
16:35:14.962 Disconnected from device DD:3D:A7:57:58:6C, reason: BLE_HCI_CONNECTION_TIMEOUT

Can anybody give an hint on the root cause of the problem ? Can I exclude a hardware design issue ? 

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