After upgrade to the latest version of the Jenkins core and workflow-basic-steps-plugin, we have detected that the behavior of the retry + timeout steps changes, the following code before the change was retied 3 times, now the job is aborted in the first timeout so the retry is ignored.

pipeline {
   agent any
   stages {
      stage('Test timeout') {
         steps {
            retry(3){
                timeout(time: 10, unit: 'SECONDS'){
                    sleep 30
                }
            }
         }
      }
   }
}