That chip you’re pointing at is the the 3.3V voltage regulator. Did you have your ESP32 development kit attached to your LED panel but didn’t have power turned on to the panel?
Yikes! Yeah, it looks like all the power for your LED panel is coming from the USB connection. If you start lighting up a lot of individual LEDs, that will pull a lot of power from the USB. Usually, they can’t supply more than about 1 amp. What I would expect to see is just that some of your LEDs would be dim, but it’s possible that it could have just overloaded the voltage regulator. It is only able to supply up to 0.8 amps. That’s fine for the ESP32 board, but not for many LED panels.