Problem with cloudinary plugin?

I installed Newspaper theme, everything seemed to be fine.
Site was looking fine, but wanted to reduce image footprints, so I setup the Cloudinary.
All media went fine to cloudinary console.

First problem, from header templates row css background images I could not change to cloudinary image.

I tried reinstall everything, I have now fresh WP, just reinstalled newspaper and cloudinary plugins. Now I cannot even load cloud header templates. I get error : “Invalid reply from server endpoint”. I have set 512mb wp_memory thing. If I disable Cloudinary it works again.

I like newpaper theme simplicity, but it seems I have to now stop using it.

It seems you have jinxed the configuration of the theme or WordPress. Just restore the backup if you have - the website should work fine