This fix took over a month to get it working.
This is the bug I'm referring to. Partially loading preview, only a small part is seen in the top right corner, the rest of the preview is a shade of gray.

What i had tried with no luck
- Tried uninstalling and reinstalling
- Updating to the latest 2024 version
- Resetting all preferences for Photoshop
- Use Graphics Processor
- Used Export As instead of Save for Web
None of the above worked. But I'm happy now the issue is now fixed.