Personalized PDF attachment not working in email delivery

Hello All,

I have a requirement to create a personalized pdf file for each recipient and attach it to the email delivery. I tried the second OOTB option in email attachment window - file is personalized and converted to PDF.

and uploaded a local .doc file as a template for personalization which looks like below.

i get below error both on attachment preview and delivery execution.

Request forum to guide with correct steps to achieve this requirement.