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doesn't support data over USB
There is no USB in that cable. There is SWD debug port there so there is a way how it could possibly work but you would need additional hardware (and software) to connect over SWD and make some sort of USB COM port available via that. And then the IDE could connect over that in future. But for now there is nothing and bluetooth is and always will be easier to use.
As for that additional hardware it could be even some existing Espruino device with USB like Espruino Pico or anything else reprogrammable with USB (like $4 Raspberry Pico or $4 STLink V2 clone dongle from Aliexpress or $3 CMSIS DAPLink dongle).
With proper sofware in the dongle and espruino one could have virtual
Serial
object in memory (wrapping Segger RTT buffer) and read/write it over swd and pass the data as usb serial port.
Just to confirm: So Bangle.js 2 uses USB only for charging and doesn't support data over USB and apps can only be installed via Bluetooth (either directly or using that relay)?