So, I reinstalled Windows 10 again (not for this issue, but because I bought a new 2 TB NVME SSD and wanted to install Windows on that), and the issue still persists. However, when I make a new blank project with just couple of rooms and a blank object and follow the steps for live room editing, then everything seems to work fine. Any sprite updated in the room gets reflected in real time. Therefore, it seems like the issue is with my current project itself? I can't see what the issue could be with my game. It's pretty huge and has lots of rooms and code at the moment, but what could create an issue that is preventing the live reloading of rooms?