.htaccess setup and configuration

Litespeed newbie. I have used an auto installer of CyberPanel on a cloud server running Ubuntu 20.04.1 LTS. Along with installed WordPress via CyberPanel.
Is there a way to enable <file> directive? This line is getting generated with a security plugin ive installed. Also I want to port over some custom file rules.

<files readme.html>
  <IfModule mod_litespeed.c>
        Order allow,deny
        Deny from all
Ive updated both files for 'AllowOverwrite All' but not sure this is the proper place.

Error Logs Show:
[INFO] Rewrite directive: <IfModule mod_litespeed.c> bypassed.
[INFO] Invalid rewrite directive: Order allow,deny
[INFO] Invalid rewrite directive: Deny from all
[INFO] Rewrite directive: </IfModule> bypassed