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Why WDT (Watch Dog Timer) does not stop counting in LPM (Low Power Mode)?

The watchdog timer is not stopping after the microcontroller enters sleep mode. The setting to stop counting in sleep mode is enabled in e2 studio. The behaviour is consistent across FSP versions.

I have merged two examples from Renesas to demonstrate the stated behaviour. I have added and enabled WDT in the sleep mode example. On the button press, the microcontroller goes to sleep and then it resets itself because the watchdog timer does not stop.

The expected behaviour is that the microcontroller must remain in sleep mode until the next button press event. I am also checking the reset cause at the time of boot and it also blames WDT.

The same behaviour has been observed on EK-RA6M3 as well.

I am attaching the link to the project. 

LPM WDT example