Now it makes sense. It would work, it would just have too much extra power that it needs to get rid of which would result in it heating up quite a bit.
I wanted to experiment a bit with external power supply.
I tried 2 new versions :
- I connected USB-B cable to arduino and to USB power adapter plugged into a wall which resulted in everything working fine.
- I did the same thing except I used DC input which resulted in sensor not working.
My best guess is that arduino has same protection diode that drops voltage so I am ending up with a lower ouput and on the other side USB-B does not do that ?