StorageFile tops off at 1036320 (bits?) ~ 1Mb [Resolved]

If I run this code on a cleaned up Bangle watch, it seems to throw a file too big error eventually and the file size reported is ~ 1Mb. Am I doing something wrong to not be able to write on beyond 1Mb ?

(** BEWARE: starts with Storage.eraseAll() ** )

function repro() {
  require("Storage").eraseAll();
  var file = require("Storage").open("testfile.log", "a");
  try
  {
    while (true){
      var sentence = "Long string of gibberishLong string of gibberishLong string of gibberishLong string of gibberishLong string of gibberishLong string of gibberishLong string of gibberishLong string of gibberishLong string of gibberish\n";
      file.write(sentence);
    }
  }
  catch(ex){
    console.log(ex);
    console.log("File size after write error: " + file.getLength());
    file = null;
  }
}

repro();

>Error: Error: File too big!
File size after write error: 1036320

Following are my env details

>process.env
={
  VERSION: "2v04.375",
  GIT_COMMIT: "9b362663",
  BOARD: "BANGLEJS",
  FLASH: 524288, SPIFLASH: 4194304, STORAGE: 4194304, RAM: 65536,
  SERIAL: "a0cf0da6-7b6c234d",
  CONSOLE: "Bluetooth",
  MODULES: "Flash,Storage,hea" ... "le,graphical_menu",
  EXPTR: 536883676 }
> 

My fork was last synced with upstream on March 1, so I am wee bit behind. Apologies if this is causing the issue.

Update: Just to clarify, I was expecting the File write to error out after ~4Mb which is the max capacity of the BangleJS.