To enable the session and debugging logging, set Session.SessionLogPath and Session.DebugLogPath:
https://beta.winscp.net/eng/docs/library_session

Please let me know how we can fix the above issue. We tried upgrading WinSCP version even though not working.

Still timeout session occurring even after adding some timeout in code.

To enable logging https://beta.winscp.net/eng/docs/ui_pref_logging :)

But, timeouts can actually happen from just about anything including storage issues, connection issues, or server side issues.

The causes are numerous and logs won't help in every situation. Forced timeouts can show incorrect errors and lead to incorrect attempts at fixing the problem.

It can be difficult.

How can we extract the logs , can you guide me

So please post the logs I have asked for.

Even after using Timeout also, it's not working.

We even upgraded WinSCP version and tested, but still not working.

Did you try increasing Session.Timeout?
https://beta.winscp.net/eng/docs/library_session#timeout

If it does not help, please post both session and debug log files.

We are using a PowerShell script to login to WinSCP session and delete file which are older.

We are getting error in while $session.removefiles step that

Time out waiting for WinSCP to respond

We have checked some ways through internet, some suggested to upgrade winscp. Even though it's occurring.

Please provide solution how we can resolve this issue.