Editing file issues on 16.10 beyond

Just wanted to consult regarding the issue in GitLab. So I have upgraded GitLab yesterday to 16.9.2 (current version) → 16.9.8 → 16.11.13 → 17.0.1 as per the Upgrade Path. For the 16.9.x versions, we are able to edit the files, but when we go further the error which we have encountered before is occurring (unable to edit the file).

I think I have an idea what causes the issue. Since there are no errors in docker logs, I tried F12, and saw “failed to load response data” error. I think there is some component on the actual server that is incompatible with the versions 16.10 beyond. Because when I have upgraded to the first path 16.9.2 (current version) → 16.9.8, the issue is not encountered:

Logs during editing of file:

Same log with the working version 16.9.8 as well

I have reverted back the version 16.9.8 for now

Do you have some ideas what might be the one causing the error?