@Chandru Vijayan Thanks for posting in our Q&A.
Did you deploy multi app kiosk mode via intune? If yes, please refer to the following article. This issue may occurs when the user is targeted by conditional access policies that require user interaction.
https://learn.microsoft.com/en-us/troubleshoot/mem/intune/users-cannot-logon-windows-multi-app-kiosk
Hope it will help.
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