.htaccess SetEnvIf Referer

I came from CWP (standard apache) and see there are some differences in openlitespeed htaccess.

I have read the “rewrite rule differences” and also some instructions in the wiki. To my understanding CyberPanel is now setup so you can use standard Apache Rewrite Rules.

But… I can no longer use the .htaccess below. It has no effect whatsoever:

SetEnvIf Referer members.xxxxx.com internal 

<Files *> 
order Deny,Allow 
Deny from all 
Allow from env=internal 

I have reviewed Rewrite Rule Differences – OpenLiteSpeed (litespeedtech.com) and tried adding slashes (which really should not matter for this). No luck.

I have attempted to check and make sure mod rewrite is active - it appears so.

I can even place random characters in the htacces file which should throw a 403, but page still loads. Seems that my site is not even reading the htaccess file.

Been a week attempting to figure out and I am out of ideas. Hoping someone can shed some light on the issue.

Anyone? Thanks in advance.