Hello Anand,
Circuit connections look appropriate.
As the ISENSE/COMP is a dual purpose pin, please confirm that ISNCMP_EN bit in MODE2 register is set to 0 to activate ISENSE functionality. Also make sure that OC fault is not masked by setting the OCM bit to 1 in MSK1 register.
You mention sporadic detection of SC, no detection of OC. This could be due to the filter times on these 2 faults, filter time on OC is typically longer. Please configure using SCFF/SCFILT (100ns to 1.1µs) and OCFILT (0.5µs to 5µs) in CONFIG2 and resp. CONFIG1 registers. The positive pulse width on Isense must be much greater than these filter times to ensure reliable detection.
From your circuit, SC and OC will always be triggered simultaneously. Is there any added value in enabling both then? OC could be masked if you want to directly interrupt PWM operation...
Also, maybe the MCU/safing logic has direct access to the PH_OC_Cutoff signal? In this case, similar behavior could be achieved at lower cost (no need for optocoupler) by driving the FSENB line low (FSSTATE=0). This will turn OFF the driver using SSD as well.
BRs, Tomas