An update that might help anyone "debugging esp32S3 using built-in JTAG".
After a bit of trial and error the debugger seems to work great with IDE 2.3.2 and ESP32 Arduino Core 2.0.15. The new core was released last week. I did not need to edit the cfg or json files as in @tcornall's workarounds. debug.cfg, debug.svd and debug_custon.json files automatically showed up in the project folder. I did update the drivers with Zadig but I'm not sure it was necessary. I got a flash write error at one point but that might have gone away after updating the ESP32 Arduino Core. I'm not quite sure because it was trial and error at that point.
The board I'm using is a LilyGO T-Display-S3 AMOLED Touch. It's great having real source-level debugging.
Thanks to the Arduino team for enabling this functionality!