Search as you type in Finder

I was on Windows few years back, and in that I could search any file or folder by typing out it's name inside Windows explorer. But I don't find a similar functionality in Finder on Mac. What I mean is that once I am inside a folder which has lots of files, I want to search for a specific file by typing its name. For e.g. if I want to search for a file named hello.png, I will type h, and then Finder will highlight the first file starting with h. But if I immediately type e after that, Finder then highlights the first file starting with e, and not he. So is it possible to search this way in Finder?

I know that I can simply type the file name in Spotlight and I will find it, but this does not work when selecting a file from browser. For e.g. when you want to upload some file, a Finder dialogue opens wherein you have to select one file. Here, a 'search as you type' feature will be very handy.

EDIT: Updating my OS to 11.1 somehow fixed this issue. But thanks to all those who helped to review this!

You're not typing fast enough.

It only waits maybe half a second, maximum, before discarding your 'h' request then starting over with your 'e'.

Here's a gif to demonstrate. If you watch the keyboard you can see what's being typed & what it selects.