A work around that seems to be working for me:
For a strange reason if I am downsizing the image then it is working fine. I had a full size image of dimension 2732×2732 and it didn’t work. Reducing the dimension of the same image to 2400×2400 is working fine. I have tried with 2500×2500 and 2600×2600 but none worked.
Most importantly, every time I change the image I had to restart the simulator to reflect the updated image.
It didn’t work on the real device yet. Like the simulator, I had to restart the device and then only it worked.
Not sure if it is something with the dimension/size of the image or with the reboot.
Further updates:
I uploaded the same build (with smaller image) to TestFlight and installed it on my device (basically updated from the previous version having large size image) and unfortunately the issue persisted 🙁
Now what I did is uninstalled the app and reinstalled it again from TestFlight. Issue still persisted.
Finally I had to delete the app, reboot my device and install the app again. This is when it worked fine.