While Loop or setWatch?

I am facing a strange behavior that I am not sure if it is expected or my code is wrong.

I am doing a simple setWatch on a Pin which is toggling very fast by the IQS263.

var countWatch=0;
var initWatch = setWatch(function(e) { 
  if( countWatch >= 300 ) clearWatch(initWatch);
  print(e);
  countWatch++;
  }, D17, { repeat:true, edge:'falling',data:D17  }
);

I am getting an error in between

Prompt not detected - upload failed. Trying to recover..

Execution Interrupted during event processing.
ERROR: Ctrl-C while processing interval - removing it.
Execution Interrupted during event processing.

Am I doing something wrong here?
My need to perform I2C read from the sensor when D17 is low.

Sometimes I also got the error like:

New interpreter error: FIFO_FULL

And

New interpreter error: CALLBACK

Often device is also gets reset loosing all RAM content