While I would be tempted to blame my issues - I'm getting the same error with my query, which is much, much bigger and involves a lot of loops - on the network, I think this is not the case.
Unfortunately it's not that simple. Query runs for 3+ hours before getting that error and apparently it crashes at the same time if it's just a query in SSMS and a job on SQL Server (did not look into details of that yet, so not sure if it's the same error; definitely same spot, though).
So just in case someone comes here with similar problem, this thread:
https://www.sqlservercentral.com/Forums/569962/The-semaphore-timeout-period-has-expired
suggest that it may equally well be a hardware issue or actual timeout.
My loops aren't even (they depend on sales level in given month) in terms of time required for each, so good month takes about 20 mins to calculate (query looks at 4 years).
That way it's entirely possible I need to optimise my query. I would even say it's likely, as some changes I did included new tables, which are heaps... So another round of indexing my data before tearing into VM config and hardware tests.
Being aware that this is old question: I'm on SQL Server 2012 SE, SSMS is 2018 Beta and VM the SQL Server runs on has exclusive use of 132GB of RAM (30% total), 8 cores, and 2TB of SSD SAN.