One more thing, in the output there is still INO mentioned, even when INO files dont exist and the "use CPP main instead of INO file" option is enabled (see step 17 & 1

:
1 - Starting ARDUINO32 generate into : /.../BugTest2
2 - Writing out header file: /.../BugTest2/BugTest2_menu.h
3 - Finished processing header file.
4 - Writing out source CPP file: /.../BugTest2/BugTest2_menu.cpp
5 - Finished processing source file.
6 - Checking if any plugin files need removal because of plugin changes
7 - Adding all files required by selected plugins
8 - Copy plugin file: ${UNO_OR_FULL}/tcMenuLiquidCrystal.cpp
9 - Copy plugin file: ${UNO_OR_FULL}/tcMenuLiquidCrystal.h
10 - Making adjustments to /.../BugTest2/BugTest2_main.cpp
11 - No existing sketch, generating an empty one
12 - Running sketch setup adjustments: setupMenu();
14 - Running sketch setup adjustments: taskManager.runLoop();
16 - Adding new callback to sketch for: TestSubMenu id(1)
17 - INO Previously existed, backup existing file
18 - Writing out changes to INO sketch file
19 - Process has completed, make sure the code in your IDE is up-to-date.
20 - You may need to close the project and then re-open it to pick up changes..