Thanks Muthu, for the links (https://github.com/Azure/azure-sdk-for-java/issues/25631#issuecomment-1021694209 which refers to https://stackoverflow.com/questions/70176728/basic-blob-download-fails-using-com-azure-storage-blob-package-with-java-nio-cha/70192990). That helped.
Problem was with the dependencies. I added netty libraries to exclusion list and added old version of netty dependencies. It worked fine.
<!-- https://mvnrepository.com/artifact/io.netty/netty-codec-http -->
<dependency>
<groupId>io.netty</groupId>
<artifactId>netty-codec-http</artifactId>
<version>4.1.70.Final</version>
</dependency>
<!-- https://mvnrepository.com/artifact/io.netty/netty-codec-http2 -->
<dependency>
<groupId>io.netty</groupId>
<artifactId>netty-codec-http2</artifactId>
<version>4.1.70.Final</version>
</dependency>
<!-- https://mvnrepository.com/artifact/io.netty/netty-common -->
<dependency>
<groupId>io.netty</groupId>
<artifactId>netty-common</artifactId>
<version>4.1.70.Final</version>
</dependency>
<!-- https://mvnrepository.com/artifact/io.projectreactor/reactor-core -->
<dependency>
<groupId>io.projectreactor</groupId>
<artifactId>reactor-core</artifactId>
<version>3.4.14</version>
</dependency>
<dependency>
<groupId>com.azure</groupId>
<artifactId>azure-core-http-netty</artifactId>
<version>1.11.9</version>
<exclusions>
<exclusion> <!-- declare the exclusion here -->
<groupId>io.netty</groupId>
<artifactId>netty-codec-http</artifactId>
</exclusion>
<exclusion> <!-- declare the exclusion here -->
<groupId>io.netty</groupId>
<artifactId>netty-codec-http2</artifactId>
</exclusion>
<exclusion> <!-- declare the exclusion here -->
<groupId>io.netty</groupId>
<artifactId>netty-common</artifactId>
</exclusion>
</exclusions>
</dependency>
<dependency>
<groupId>com.azure</groupId>
<artifactId>azure-storage-blob</artifactId>
<version>12.14.2</version>
<exclusions>
<exclusion> <!-- declare the exclusion here -->
<groupId>io.netty</groupId>
<artifactId>netty-codec-http</artifactId>
</exclusion>
<exclusion> <!-- declare the exclusion here -->
<groupId>io.netty</groupId>
<artifactId>netty-codec-http2</artifactId>
</exclusion>
<exclusion> <!-- declare the exclusion here -->
<groupId>io.netty</groupId>
<artifactId>netty-common</artifactId>
</exclusion>
<exclusion> <!-- declare the exclusion here -->
<groupId>io.projectreactor</groupId>
<artifactId>reactor-core</artifactId>
</exclusion>
</exclusions>
</dependency>