That is exactly the ESC that I have. I have no clue how to control the LEDs. Must be something MSP or Betaflight specific.
The errors you’re getting are identical to what I got with a Holybro Kakute F4 V2.4 while trying to get Copter working. The Matek H743SlimV3 did not show this behaviour. I assume it does indicate that you over-stretched the resources of your FC.
Try DSHOT300 instead. I assume you have a F405 based FC.
If the ESC recognizes issues on the FC control signal it will disarm and that’s what likely happens with the motor that just stops.