The issue is regarding two-factor authentication. I am able to login on my web server by just providing the token key with an already stored password. However, whenever I edit the first file opened from the WinSCP explorer and save it, WinSCP asks for authentication again. At this time, WinSCP asks for both password and token.
This bug is very similar to "Minor problem with ssh google two-factor authentication". I am attaching the debug logs for your reference.
Thanks and Regards,