@SLB Thanks for your prompt response, Let me try the suggestion given by Jason.
So, I need to run the below command on the impacted server
psexec -i -s c:\windows\system32\cmd.exe to open a 64-bit command prompt and use that to see if your setup works ok using the LocalSystem account.
Next, try using
psexec -i -s c:\windows\syswow64\cmd.exe to see if it still works using the LocalSystem account in 32-bit mode.
Please do let me know if any things else need to be executed to cross check if issue is from server end