Configuration is set to a 1.44M drive and the BIOS is set to 1.44M also.
EDIT: I tried a couple more machines and it looks like it might affect all AMI BIOS machines.
Examples with MS-DOS 6.22 on a 486:


Example with MS-DOS 3.30 on a 286:

Another 286 machine, same floppy image, same settings, same OS image, but works.

Similarly, the Award SiS 486 machine with identical settings seem to be fine too.