Cookie based authentication does not work starting from 21.1.x

OS: Windows 10

CEP: 8

Photoshop: 2020

I am working on an extension that accesses a page of our web app. To access, I need to put my creds in a central authentication system. After verifying the credential it sets a cookie in the browser and using that it authenticates every request.

While the authentication works till version 21.0.3, It doesn't work starting from 21.1. Whenever I hit the submit button, it just redirects to the same login page. I have tried to load few other sites which have similar authentication system and they also show the same behaviour.

I have enabled persistent cookies in the manifest. It doesn't help.