Hi @sanal-kumar-p-2758
Yes, this could be one of the reasons for the web package deployment failure with the error message as you have mentioned.
There is no ETA when this would be removed in the future releases "There is a known limitation affecting Private Endpoints and traffic routing with slots. As of April 2021, automatic and manual request routing between slots will result in a "403 Access Denied". This limitation will be removed in a future release."
You can refer to the AppsonAzureBlog for any announcement/feature from the product team.