Hi Gaurav Banyal
According to your description, this is a normal behavior. When the supply voltage drops below the VPOR (1.1V for KL03), the POR circuit causes a reset condition. With this reset your MCU recover from VLLS and get in RUN mode, but LVD circuit holds the MCU in reset until the supply rises above the LVD low threshold VLVDL (1.6V), which will allow your MCU to execute code normally and allow you to get in VLLS again.
As you mentioned LVD system is Off in VLLS, so for this mode you will have to periodical check your battery voltage to avoid that it drops below Vpor.
Have a great day,
Jorge Alcala
-----------------------------------------------------------------------------------------------------------------------
Note: If this post answers your question, please click the Correct Answer button. Thank you!
-----------------------------------------------------------------------------------------------------------------------