I got it worked without any issues, uploaded images in /content/dam are synced to scene7 and able to access with scene 7 url. Only thing we need verify whether the mime type is allowed in below configuration.
Config name: Adobe CQ Scene7 Asset MIME type Service (com.adobe.consulting.integration.scene7.impl.Scene7ReplicationContentFilterFactory)
Property: MIME Type mapping (scene7.replicationFilter.mime_types)
- Ravi Pampana