WORKAROUND
1.Close Toad
2.Go to C:\users\[your user]\AppData\Roaming\Quest Software\Toad for Oracle\16.2\User Files
3.Open Toad.ini file
4.Add line below under [SETTINGS] in Toad.ini:
FetchDBMSOutputByLob=0
STATUS
Waiting for fix in a future release of Toad for Oracle
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