Remix cannot decode endpoint data using gzip - node.js

Question

I am working on a remix project and have gotten into an issue where a loader requesting data from a foreign endpoint encoded with gzip do not seem to be decoded.
The remix loader is fairly simple, with some simplification it looks like this:
export const loader = async () => {
try {
const [
encodedData,
[... <other responses>]
] = await Promise.all([
gzippedEndpoint(),
[... <other requests>]
]).catch((e) => {
console.error(e);
});
return json([<loader data>]);
} catch (error) {
console.log("ERROR:", error);
return json({});
}
};
It's the gzippedEndpoint() that fails, where the error stack claims that the returned data is not valid json. I figured compression should not be a problem, but it seems like the fetch requests on the remix server side cannot correctly decode the gzipped data. I also see no option to enable decoding explicitly on remix. When I disable gzip on the foreign endpoint everything works fine for the remix server making the request and parsing the response.
Here is an example of the headers from a returned response (with some obfuscation):
200 GET https://dev.server.com/public/v1/endpoint {
'cache-control': 'no-store, must-revalidate, no-cache',
connection: 'close',
'content-encoding': 'gzip',
'content-type': 'application/json',
date: 'Mon, 12 Sep 2022 06:51:41 GMT',
expires: 'Mon, 12 Sep 2022 06:51:41 GMT',
pragma: 'no-cache',
'referrer-policy': 'no-referrer',
'strict-transport-security': 'max-age=31536000 ; includeSubDomains',
'transfer-encoding': 'chunked',
}
Is there some remix option or request header that I am missing here?