Padshop 2 corrupts project

TL;DR: Padshop 2 not working as it should on Cubase 10.5 Pro, not accepting audio files. Eventually lead to a serious error and a corrupted project file.

I’ve been working on a scoring project for a customer for while and I’ve been having serious issues with Padshop 2.
First thing I noticed is that I’m no longer always able to load audio files (either from the project window or the media bay) directly into Padshop. When dragging the ‘+’ sign does appear, but nothing happens when dropping the audio snippet. I don’t remember exactly how I was eventually able to get it working, but this was the first sign that something was off…

So, I added 2 tracks of Padshop and continued with the project. Some time later, I tried adding another Padshop track, after which I received a pop-up message: A serious problem has occurred. This message also refers to a Cubase10.5LOG file which I am unable to locate. This message was followed up by the notification that the project had become corrupt and that an older backup file would be accessable.

Restarting Cubase renders me completely unable to open the former project. The backup files were also inaccessable.
I started up a new project and started importing tracks one by one.
When attempting to import the suspected Padshop tracks into a new project, I receive the following message:

Application ‘Cubase / Cubase Artist’ has caused the following error:
DCOM connection to program ‘Synsopos.exe’ failed.
Error:Kan RPC niet uitvoeren. (english: can’t execute RPC)

This one is weird, since I don’t even have Artist installed…

Any tips on how to fix Padshop and prevent this from ever occurring again would be much appreciated.

Update: Did a clean re-install of Cubase 10.5 Pro and the problem persists. I haven’t been able to reproduce the project corruption, however, I’m still unable to utilize Padshop with custom audio snippets.

What is going on with this issue? I have it too and have not been able to fix it.
I have not been able to use Cubase for 6 months now and started using Mixbus.
Why does Steinberg sell software that you can’t use? Why don’t they fix this?

Did they fix this in the new release Cubase 11?