No such host is known - cannot run tests or download a log

Hello, when I try to run Unit Tests using Run Test green button I get a following error, and the test is not run in the Sandbox.

When I enter the Log Analyzer tab, I retrieve all recent logs with no problems, but double-clicking on a any log throws the same error, and the log is not displayed in the window.

However, I am able to Retrieve or Deploy classes and metadata with no problem - it is kinda slow, but it works. I’m using VPN provided by my company, and I suspect that my network traffic goes by some proxy.

I am able to run test from terminal inside WebStorm using Salesforce CLI, it is executed on the Sandbox

PS C:\Repos\salesforce\projectName>     sf apex run test --class-names LM_LeadTriggerTestClass -o ORG-Name
Run "sf apex get test -i 707Pu00000LlcBe -o stanislaw.zan@projectName.com.proj" to retrieve test results
Run with --synchronous or increase --wait timeout to wait for results.
PS C:\Repos\salesforce\projectName>

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I am as well able to run tests from Visual Studio Code and Salesforce plugin, the test is executed and log is retrieved.

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The Proxy Setting in WebStorm is set to Auto-detect proxy settings. When I change to No-Proxy, I cannot retrieve or deploy files as I get error “UnknownHostException invoking”.

Server Certificates has checked Accept non-trusted certificates automatically.

Versions:

Illuminated Cloud - I initially checked at 2.3.11, then updated to 2.3.2.0, still gets error
WebStorm 2024.1.2
- Build #WS-241.15989.105, built on April 23, 2024
Salesforce CLI @salesforce/cli/2.39.6 win32-x64 node-v20.12.2

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