Just a quick update on this. I had opened a ticket with Smarthings Support. I was asked and about to reproduce the issue today, but it now works!
I asked them if they did any on my hub and waiting for a response.
Fortunately, I have installed universal z-wave lock driver from RBOY apps a while back. It did not help as well before. I just checked today and looks like I got an updated driver dated 11/24/2023. This may have helped fix my issue as it is the driver used. I’ll update further but may help anyone seeing similar problem…