Pathinfo Permalink Troubleshoot

I have wordpress up and running at https://www.dss.com.my with the default permalink structure. I later decided to change to a new permalink structure..:

/index.php/%category%/%postname%/

..before the permalinks gives me the Page Not Found errors

Quickly I reverted to the default permalink structure which was https://www.dss.com.my/?p=63 and it worked fine again.

I uploaded a fresh copy of wordpress to www.dss.com.my/wordpress with a new database so that I can troubleshoot without affecting the traffic to https://www.dss.com.my. The hyperlinks on the blog looks fine (https://www.dss.com.my/wordpress/index.php/uncategorized/post-a/) but it will only give me Error 404. I went into the database and found the ‘guid’ field in the posts table doesn’t update. It shows the old permalink structure https://www.dss.com.my/wordpress/?p=1

I have a few wordpress installed on my local machine for coding purposes and I find that although the database doesn’t update with the new permalink structure, WordPress is somehow able to redirect me to the correct post. What really confuses me is some guid shows the old permalink structure:
https://localhost/wordpress/?p=3
and some has the new ones:
https://localhost/wordpress/index.php/uncategorized/post-a/

Downloaded the AskApache RewriteRules Viewer plugin and it tells me this:

> Permalink: /index.php/%category%/%postname%/
> Writable .htaccess file found
> mod_rewrite not found
> Using pathinfo style index permalinks
> Not using mod_rewrite permalinks

From my understanding pathinfo style permalinks does not require mod_rewrite

I downloaded the entire wordpress codes and database from my webhost to my local machine and the links works!

I concluded that there is some settings that is wrong with my webhost but I don’t know what. I am with H-Sphere

Can anybody help? Thanks in advance.