Cats-effect 3 - IO hangs after a while in concurrent fs2 streams

Question

• I'm trying to run a fs2 application in a gcp e2-small, 0.5 vCPUs core machine. Therefore I'm seeing only io-compute-0 & io-compute-1 thread names in the logs.
• In the application,
  • There are 2 fs2.Streams that run concurrently
  • Stream 1: read credentials from a Ref.of[F, SessionInfo]
  • call a REST api, do some processing on that data
  • save to disk as a zip file
  • also save some data in to a Ref.of[F,MyDTO]
  • This happens every 3 seconds.
  • Stream 2: read from Ref.of[F,MyDTO] and save some data into another file in the disk.
  • This stream runs every 281 seconds
• I'm using AsyncHttpClientCatsBackend with a connection timeout of 1 minute but I don't see any timeouts even after few hours of hanging
• I use Sync[F].blocking whenever I read/write files from disk.
• After an hour or so the application hangs & below are some images from the thread dump that I took with jstack

I would appreciate any help to understand the issue.

Both are awaiting notification on [ 0x00000000e0ddac58 ] which is WorkStealingThreadPool