@Ajinkya Errum
Thank you for your time and patience throughout this issue!
After creating my own lab and walking through the connector steps, I was able to reproduce your issue. Based off the error message, I'd recommend creating a support request and if you aren't a CSP, I'll be more than happy to enable your subscription for a one-time free technical support request, so our support team can take a closer look into your environment and issue.
If you have any other questions, please let me know.
Thank you for your time and patience throughout this issue.