Hi @Prathamesh Shende ,
It seems that this is a known issue: Failure to publish WASM when project source path contains blank spaces - Post-upgrade VS 2022 to 17.2.4 #26061.
And the issue might relate to the location of your project, the path might contain the blank spaces, try to remove the blank spaces, or change the project location to the path without blank spaces.
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Best regards,
Dillion