Hello @DrKarthi,
For enabling the execution of a callback associated to a Pwm channel at both edges of the PWM signal, besides setting the Notification on PWM_BOTH_EDGES using the Pwm_EnableNotification, like you do in the Initialization subsystem of your model, one additional setting is needed in the associated .mex configuration file.
Hence, can you please set the Flag Generation parameter on the Both_Trailing_and_Leading_Edge option and check if after this change you can achieve the desired behavior? I have attached below a screenshot of the setting.

I have tested your model with this setting, with a minor modification that inside the PwmChannel_0_Callback I am toggling the RGBLED0_BLUE LED, instead of constantly feeding it the 1 value. After connecting a Logic Analyzer to the pin on which the PWM signal is generated (PTA1) and also on the pin corresponding to the LED (PTA31), I have obtained the following results.

As you can see, at each edge of the PWM signal, the LED is changing its value, meaning that the callback its executed at both rising and falling edge.
Moreover, for making sure that the Simulink generated code gets updated according to the latest modifications inside your model, between consecutive build of your application, you could try erasing the modelName_ert_rtw, slprj folders and also the modelName.slxc file.
Please let us know if this helps or if further information is required from our side.
Thank you,
Irina