Infinite loop in CURSOR

Probably you're moving the row when you set Deleted=1 and reading it again with your FAST_FORWARD cursor. Use a STATIC cursor instead, which will iterate a copy of the data, and avoid mutating the data structure you are traversing.

DECLARE st CURSOR LOCAL STATIC FOR . . .

You want WHILE @@FETCH_STATUS = 0 which means continue unless something isn't right.

Using <> -1 means it will continue even if the row fetched was missing, or it's not performing a fetch operation, making it infinite unless you get -1 as a return value, since there are 4 return values for @@FETCH_STATUS.

 0  The FETCH statement was successful.
-1  The FETCH statement failed or the row was beyond the result set.
-2  The row fetched is missing.
-9  The cursor is not performing a fetch operation

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