Switching on high activity in a relatively dense system of active Janus colloids, we observe fast clustering, followed by cluster aggregation towards full phase separation. The phase separation process is however interrupted when large enough clusters start breaking apart. Following the cluster size distribution as a function of time, we identify three successive dynamical regimes. Tracking both the particle positions and orientations, we characterize the structural ordering and alignment in the growing clusters and thereby unveil the mechanisms at play in these regimes. In particular, we identify how alignment between the neighboring particles is responsible for the interruption of the full phase separation. Our large scale quantification of the phase separation kinetics in active colloids points towards the new physics observed when both alignment and short-range repulsions are present.