REST API is sending error as compressed file and not as plain text

REST API is sending error as compressed file and not as plain text. REST API behavior When I am adding the option to send the output of curl in a file, it
creates a compressed file with the error message inside, Same behavior is observed in OSB. This behavior we specifically see in bank and Branch REST APIs.

When we use HCM API like create email, update email, the API responds with error as plain text expected. But the Bank and Branch API has different behavior

We need to get confirmation that the REST APIs are genuinely doing compression in case of HTTP 400 errors. I came across the HTTP Compression term (HTTP compression - Wikipedia) where APIs are designed to compress payload to improve transfer speeds.