Hi @Sandhya Reyya,
Per my test, the Library Record Declaration will lock the file as read-only. I can reproduce your issue with declare the item in place record
As a workaround, we will need to Undeclare in place record to fix the issue. You can follow the steps to active the Library Record Declaration setting and undeclare the item. Please make a reference
- Go to Site Settings, under Site Collection Administration select the Site Collection feature, search for "In place record management" and activate it.
- Once the feature is activated, you can see the record declaration settings in all Document Library
- Select the “Always allow the manual declaration of records”. So, whenever I want I can declare or undeclare the document as a record.
- Then in Compliance details you can undeclare the item
Finally we can deleted/check in/discard checkout after undeclare in place record.
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