[Bug] - `Set-SftpItem` Stops `Enter-PSSession` Due to Progress Stream

When I run the below type of flow, the powershell ( 5.1.17763.6189 on Microsoft Windows Server 2019 Datacenter ) session is killed with the below. My client is pwsh 7.4.5 though I connect to the Desktop endpoint. My module version is _ 3.1.2_ which is old and I'm just now seeing that.

Processing data from remote server server1 failed with the following error message:
    The WSMan provider host process did not return a proper response.  A provider in the host process may have
    behaved improperly. For more information, see the about_Remote_Troubleshooting Help topic.

I run get-sftpchilditem , I do see the file was partially uploaded.

etsn server1
new-sftpSession -ComputerName IPAddress -Port 22 -Credential user
set-sftpItem -SessionId 0 -Destination /home/user/ -Path .\file.zip

Workaround

Run the below prior to uploading files. So I assume there is something going on with out the progress stream is being written.

$progresspreference = 'SilentlyContinue'

Start with the Set-SftpItem implementation and its progress-stream handling, then reproduce the etsN, New-SftpSession, and Set-SftpItem flow on the stated PowerShell versions. Compare behavior with $ProgressPreference set to SilentlyContinue; done means the upload completes without terminating Enter-PSSession and the session remains usable.