This is a known issue with the Demo-id. The Demo-id is shared across all clients testing the API, meaning that a lot of wallets have already been created for this client-id. The culprit is retrieving the balances of all these wallets (an on-chain operation).
In the meantime the following can be used:
Add `includeBalance=false` as query parameter in the endpoint. This will return the wallets, without the balances.
Also, you can add pagination on the call: `page=1&size=10`
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