Business Central operations get stuck after Git error in BRMS/BPMS

Issue

• When I create a project in business-central, I get an error pop-up "java.lang.RuntimeException: org.eclipse.jgit.api.errors.ConcurrentRefUpdateException: Could not lock HEAD. RefUpdate return code was: LOCK_FAILURE". There was no error log in server.log. After that, every time I create a project, there in no response ("Loading..." spin)