Google Apps script setValues() issue: timing out intermittently

According to this comparison of read/write methods, using advanced services to write is faster than setValues().

Using the following modified version of your original snippet worked for your sample spreadsheet:

function myFunction() {
  var row1 = 1;
  var col1 = 1;
  var row2 = 1300;
  var col2 = 140;
  Logger.log({numrows:row2, numcols:col2} );
  var rng = SpreadsheetApp.getActiveSpreadsheet().getSheetByName("Sheet1").getRange(row1,col1,row2,col2);
  var values_to_set = rng.getValues();
  var rng2 = SpreadsheetApp.getActiveSpreadsheet().getSheetByName("Sheet2").getRange(row1,col1,row2,col2);
  //rng2.setValues(values_to_set);
  // Based on https://developers.google.com/apps-script/advanced/sheets
  var request = {
    'valueInputOption': 'USER_ENTERED',
    'data': [
      {
        'range': 'Sheet2!' + rng2.getA1Notation(),
        'majorDimension': 'ROWS',
        'values': values_to_set
      }
    ]
  };
  Sheets.Spreadsheets.Values.batchUpdate(request, SpreadsheetApp.getActiveSpreadsheet().getId());
  Logger.log('done');
}

This issue is already reported to Google in Issuetracker. Add a star(on top left) to the issue to request Google developers to prioritize the issue and fix it.

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In the mean time, Consider using Advanced Google services using google-sheets-api to do massive operations on a spreadsheet.

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The problem seems to stem from set* methods. Another alternative in your specific case would be to use range.copyTo(instead of getValues() and setValues()), which works without issues (tested upto 15 times)

/**@OnlyCurrentDoc*/
function myFunction() {
  var row1 = 1;
  var col1 = 1;
  var row2 = 1300;
  var col2 = 140;
  console.log({numrows:row2, numcols:col2} );
  var rng = SpreadsheetApp.getActiveSpreadsheet().getSheetByName("Sheet1").getRange(row1,col1,row2,col2);
  /*var values_to_set = rng.getValues();*/
  var rng2 = SpreadsheetApp.getActiveSpreadsheet().getSheetByName("Sheet2").getRange(row1,col1,row2,col2);
  /*rng2.setValues(values_to_set);*/
  /*Added*/rng.copyTo(rng2, SpreadsheetApp.CopyPasteType.PASTE_VALUES, false)
  console.log('done');
}


function test_myFunction(i=15){
  while(i--){
    myFunction();
  }
}