This is a quirk of commercial LiteSpeed, they block downloading of any file called .htaccess or even beginning with .htaccess. We reached out to them and apparently it's hard coded into the software and can't be disabled in the config.
It will only affect you if you're running commercial LiteSpeed on the control panel server. It doesn't affect you if you're running it on your app servers and also OpenLiteSpeed interestingly doesn't have this feature.
Enhance can work around it by encoding the .htaccess filename somehow.