Hi @Sooraj Puthiya Purayil ,
Thanks for your detailed case description.
1) It should be confirmed before resolving other issues. There are multiple SCCM 2203 issues fixed in KB14244456 and this update is available in the Updates and Servicing node of the Configuration Manager console. To install the SCCM 2203 hotfix KB 14244456, you must first upgrade to SCCM 2203.
Link: New SCCM 2203 KB14244456 Hotfix Update Rollup (prajwaldesai.com)
Note: Microsoft provides third-party contact information to help you understand the problem. This contact information may change without notice. Microsoft does not guarantee the accuracy of this third-party contact information.
2) Is the AD System Discovery working properly before the upgrade? Please make sure that it is enabled and configured correctly. If all configurations are correctly, please check adsysdis.log to see if there are any errors.
Below is the screenshot of my configuration for your reference.