Modify Text File action - is there a path length limitation ?

For Windows, is there a path length limitation for "Modify Text File" action? (other than the Windows limit of 256). Where is the source for this action?

My text file is not gettting updated and the fully qualifed path (path+file name) is 154 characters. Howvever, a shorter path does get modified?

Status: ERROR
Additional Notes: ERROR - Unable to locate ASCII text file to be manipulated. Deferring...

The debugging does not show any specific errors.

Is there anything that could keep "Modify Text File" action from working?