Thanks for your response.
I tried all possibilities (created a new project, did a clean build), but still saw the issue.
Below is one of error snipper for your reference.
c:/nxp/mcuxpressoide_11.4.1_6260/ide/plugins/com.nxp.mcuxpresso.tools.win32_11.4.0.202103011116/tools/bin/../lib/gcc/arm-none-eabi/10.2.1/../../../../arm-none-eabi/bin/ld.exe: ./main_src/FILE1.o:<PATH_To_The_workspace>\<HEADERFILE1.h>:204: multiple definition of `VARIABLE'; ./main_src/FILE2.o:<PATH_To_The_workspace>\<HEADERFILE1.h>:204: first defined here