Thanks for your response.
The issue is solved.

@User#001: It looks like /incoming/arp is not valid path. If home path has format /C:/Users/InfoTech, then it is unlikely, there's path /incoming/arp.

Maybe it would be /C:/Users/InfoTech/incoming/arp.

Hello All,
Can't transfer files over SFTP to server.
I got the following error message:

No such file or directory.
Error code: 2
Error message from server: No such file

What can be done to get read of this error
Thanks in advance!

Please provide us step-by-step instructions for reproducing the problem, as well as a corresponding session log file.

WinSCP: Version 5.13.4 (Build 8731)

FTP – Works fine

SFTP –

Cannot create remote file 'New folder/testdrawiofile'.
No such file or directory.
Error code: 2
Error message from server: No such file.

SFTP –

Cannot create remote file '/testing/testdrawiofile'.
No such file or directory.
Error code: 2
Error message from server: No such file.

SFTP (Using FileZilla) – Works fine

Error Code: 2
This error represents an inability to access the file that it creates on the local machine or that it references on the local machine. It appears that WinSCP is unable to access the local file.

A clearer error can be seen when trying to copy file into cache and then executing a paste.

Error changing directory to 'C\Users\...\documents\testdrawiofile'
Cannot get real path for '/testing/C:\Users\...\Documents\testdrawiofile'.
No such file or directory.
Error code: 2
Error message from server: No such file.

From the above message, one might assume that perhaps it doesn't have access to the file path, however if you notice, it is the user directory path which has full permissions. I also opened the application using "run as administrator" to see if this would fix it to no avail.

This appears to be a bug. However, as I could be wrong, if someone knows a work around please let me know.