@Prajnan Kotoky Thanks for reaching out. Based on the error message you provided, it seems like the Event Grid Topic subscription is failing to validate the webhook URL for your Development API Management instance.It is possible that the issue is related to the fact that your API Management instance is internal only and is not accessible from outside your network.
consider exposing your APIM instance externally to resolve this issue.
do let me know incase of further queries, I would be happy to assist you.