The issue was a missing patch. We implemented the patch for AEM 6.5 and
updated it to 6.5.3 with the help from Adobe support and it resolved the
issue. Thanks all for viewing and responding to the question. Note -
6.5.3 is not directly available in the download site. Raise a SR with
support and they will help you.
The issue was with the proxy creation. The adobe documentation are not
accurate. When you create the proxies using WS Import the packages got
created correctly and resolved the issue.Thanks all for checking.