Streaming API in Azure Static web apps

I am trying to impelement a streamign API in Azure Web App application.
I was able to build a Proof of Concept in a regular application (Blazor Wasm and Azure Function) but not configured as SWA. It worked just fine. When copying the same code to the SWA, it is not working (i.e. streaming is not working, the value comes ones at the completion rather than stream as we go).

Any suggestions whay might be going on?

Here is the code I have for the Azure function

        [Function("GetItems")]
        public static async Task<HttpResponseData> Run(
              [HttpTrigger(AuthorizationLevel.Anonymous, "get", Route = null)] HttpRequestData req,
              FunctionContext executionContext)
        {
            var logger = executionContext.GetLogger("GetItemsFunction");
            logger.LogInformation("C# HTTP trigger function processed a request.");

            // Create a response
            var response = req.CreateResponse(System.Net.HttpStatusCode.OK);
            response.Headers.Add("Content-Type", "text/event-stream");
            // Add CORS headers
            response.Headers.Add("Access-Control-Allow-Origin", "*");
            response.Headers.Add("Access-Control-Allow-Methods", "GET, POST, OPTIONS");
            response.Headers.Add("Access-Control-Allow-Headers", "Content-Type");

            // Start the stream
            await using (var writer = new StreamWriter(response.Body))
            {
                var items = new[] { "Item 1", "Item 2", "Item 3", "Item 4", "Item 3", "Item 4", "Item 3", "Item 4", "Item 3", "Item 4", "Item 3", "Item 4", "Item 3", "Item 4", "Item 3", "Item 4", "Item 3", "Item 4", "Item 3", "Item 2", "Item 1" };

                foreach (var item in items)
                {
                    await writer.WriteLineAsync($"data: {item}");
                    await writer.FlushAsync();
                    await Task.Delay(1000); // Simulate delay
                }
            }

            return response;
        }

And Here is the code in the Blazor wasm Razor page

@page "/items"
@inject StreamingApiService StreamingApiService

<h3>Streaming Data</h3>

@if (streamedData == null)
{
    <p><em>Loading...</em></p>
}
else
{
    <ul>
        @foreach (var item in streamedData)
        {
            <li>@item</li>
        }
    </ul>
}

@code {
    private List<string> streamedData;

    protected override async Task OnInitializedAsync()
    {
        streamedData = new List<string>();

        await foreach (var item in StreamingApiService.GetStreamedData())
        {
            streamedData.Add(item);
            StateHasChanged();
        }
    }
}

And this is a helper class I am using

using Microsoft.AspNetCore.Components.WebAssembly.Http;
using System.Text.Json;

namespace ClientApp;

public class StreamingApiService
{
    private readonly HttpClient _httpClient;

    public StreamingApiService(HttpClient httpClient)
    {
        _httpClient = httpClient;
    }

    public async IAsyncEnumerable<string> GetStreamedData()
    {
        using var request = new HttpRequestMessage(HttpMethod.Get, "http://localhost:7181/api/GetChat");
        request.SetBrowserResponseStreamingEnabled(true);

        using var response = await _httpClient.SendAsync(request, HttpCompletionOption.ResponseHeadersRead);
        response.EnsureSuccessStatusCode();

        using var stream = await response.Content.ReadAsStreamAsync();
        using var reader = new StreamReader(stream);

        string line;
        while ((line = await reader.ReadLineAsync()) != null)
        {
            // Deserialize the line into a MyDataItem object
            yield return line;
        }
    }
}