Matchmaking and search match automatically cancelling itself

When I try to play, "Searching for match" message appears on top of the screen, but after about 1 minute the matchmaking just automatically cancels.
Same happens when trying to play bot match with other players. If I try private bot match I still get the message "Coop bot match - waiting for players" instead of match starting immediately.
When attempting custom match "start match" button gives error "not all players are ready" and unready me.

Console doesn't show any errors at any given time. I've also tried verifying the game files several times, but nothing changes. Sandbox still works normal, and I can spectate other matches.
 
These are the lines on console after the automatic cancel occurs:

[GCClient] Send msg 9017 (k_EMsgClientToGCIsInMatchmaking), 17 bytes
[GCClient] Recv msg 9018 (k_EMsgClientToGCIsInMatchmakingResponse), 19 bytes
[GCClient] Send msg 9012 (k_EMsgClientToGCStopMatchmaking), 17 bytes
[GCClient] Recv msg 9013 (k_EMsgClientToGCStopMatchmakingResponse), 19 bytes
 
Tried with VPN and can confirm, now queue works normal and I can join games and play bot games.

Network location seems to be the issue here.

[SteamNetSockets] Ping location: ams=52+5,lhr=64+6/57+5,fra=59+5,par=68+6/62+5,vie=73+7/68+5,sto=71+7/72+5,sto2=77+7/72+5,waw=79+7/72+5,hel=/79+5,iad=139+13/139+5,sgp=227+22/228+22,gru=252+25

^There are the ping locations I'm getting with VPN. They are all in Europe as I have set my region.

[SteamNetSockets] Ping location: dfw2=172+17,dfw=/172+17,atl=/190+17,ord=/192+17,lax=/203+17,iad=/205+17,sea=/223+17,lim=/271+17,lhr=/274+17,hkg4=299+29,hkg=/299+29,sgp=/333+29

^These are the ping locations I have without VPN. They seem to be located in NA?

If I disable VPN after the game has launcher, I will get "Network unavailable" popup on top of the menu. After few seconds it disappears and the game works like normal. I only need VPN during launch to make game connect to right server.

Hopefully devs will note this thread and find out what is causing this bug? I'll provide more info if needed.
 
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