backspace treated as a space in ssh session

[elasticrash]

So I thought I would try ghostty. I am not certain if this has been raised before, I did search the open bugs and didn't find anything related. I work on a remote machine on AWS. The moment I ssh into the machine. I run into this problem that backspace is not removing characters.

In the beginning I thought that it might be some weird conflict with starship, so I removed starship and still faced the exactly same problem.

The only difference with a classic ssh connection is that this uses STS for auth. Once I exit the ssh session, the terminal works fine again. Other terminal emulators work as expected.

This is using the mac os build of ghostty