SFTP blob creation fails with "Operation unsupported" on initial setup

Hi, I am running the latest Kopia v0.22.3 and I am trying to create a new SFTP repository. It always fails on the last step with an error:

Connect Error: INTERNAL: internal server error: connect error: unable to write blobcfg blob: PutBlob() failed for “kopia.blobcfg”: unable to complete PutBlob(kopia.blobcfg) despite 10 retries: unexpected error renaming file on SFTP: sftp: “Extended request not supported.” (SSH_FX_OP_UNSUPPORTED)

I see there was a bug previously: SFTP blob creation fails with "Operation unsupported" on initial setup · Issue #3035 · kopia/kopia · GitHub

Did it come back? The user has all the right permissions (verified via winscp)

Any workaround tips please?