Magic byte is not 0xE9

[lmcbmai]

Hi,
I keep getting 'Magic byte is not 0xE9' when trying to upload littlefs.bin file to my ESP8266. The first byte of .bin file is 0x01 and even if I manually change it to 0xE9, it does not help and after upload attempt it reverts to 0x01. The same file is uploaded successfully and works fine when I use COM port instead of OTA. The command executed with OTA upload is
C:\Users<username>.platformio\penv\Scripts\platformio.exe run --target uploadfsota --environment esp12e
with COM port upload
C:\Users<username>.platformio\penv\Scripts\platformio.exe run --target uploadfs --environment esp12e

Sketch uploads over OTA always work fine.

It could be something with my VSCode configuration, but I have very little experience tweaking it. Any suggestions/help will be very much appreciated.

Thanks