'Allowed for new entities' not working

For existing nodes, the autosave works as intended, but not for the new nodes.
I did check 'Allowed for new entities' option at the bottom of the configuration, but it doesn't work.

After server failure, when I go back to the node editor page, I do have following pop up,
- A version of this page you were editing at xxxxx (date and time) was saved as a draft. Do you want to resume editing or discard it?

I clicked 'Resume editing', but nothing happens. When I click 'Discard', then it goes back to the empty node editor page.

Could be related to the fact that I use Gutenberg editor, but the same occurs to CKEditor5 on Drupal 11.

Also have checked the database's node revision tables, but there is no record.
I can see that autosave form module is working in autosave_form_entity_form table is continusouly updated, but it does not connect to node revision or any Drupal folder files.

Since it is working for an existing entity, I currently recommend my team to save unpublished version first as a workaround, but it would be better to have this process automatic.