Cannot create a work profile The security policy prevents the creation of a managed device because a custom os is or has been installed on this device

I have 5000 devices enrolled with EMM using android management API and recently I am getting issues with multiple devices out of nowhere and getting and error prompt after scanning the QR code on re-enrollment. All of my enrolled devices are Samsung Tab with the older version of android(7-9) and the issue doesn't seem to be related to the android version. Also, The issue has been experienced for the device which was earlier enrolled and was working fine but recently has this issue, we tried re-enrolling it but it gives us the same following error prompt after QR scan.

Cannot create a work profile – The security policy prevents the
creation of a managed device because a custom os is or has been
installed on this device

For your kind information, there is no custom os installed on the device and the device is not rooted or bootloader is not unlocked. I have researched a lot over the internet but cannot find a solution to the problem I have tried following approaches but it doesn't seem to work in my case

1. To fix this, you will need to update the time on the device by either connecting to wifi or cellular data (insert SIM-card), or by manually changing it in the set-up screen. After this is done you will be able to provision the device.
2. Tried DPC Identifier method for enrollment, When prompted to sign in on fresh factory reset device, enter afw#setup, which downloads Android Device Policy. Scan a QR code or manually enter an enrollment token to provision the device.

None of the above seems to work for me, I have also seen that its an issue related to Samsung Knox version, so can anyone from Samsung or google help me debugging and solving this issue, will removing the Knox app from the device work in my case.

Eagerly awaiting for the response as most of my device has started getting affected with this issue, please let me know your thoughts and resolution on this.