Remote editing only works for .ps1 files but not others

[OnurGumus]

When I follow this documentation https://docs.microsoft.com/en-us/powershell/scripting/components/vscode/using-vscode-for-remote-editing-and-debugging?view=powershell-6

I noticed remote editing only works for .ps1 files. For other extensions, you can save the file but it won't sync back to the server. I am using PowerShell v7 preview 3 for both host and server and both host and server are windows machines along with Latest VSCode and Powershell extension

A relevant issue has been earlier reported but closed: https://github.com/PowerShell/vscode-powershell/issues/1040