Hello @ashwini2024,
Thanks for the information, here are my findings, some are just recommendations since I do not know your setup:
You are usgin the following parameter as "not used", while the API manual indicates that for "master secret" is needed

Ensure the key handle (0x00020600) has the required flags

Please use a different key handle than pskKeyHandle, since they have different requirements

Please ensure that the targetKeyHandle (0x00000000) has the required flags

Please check the noes above and let me know if the behavior changes, if you receive a different error, please let me know.
Thanks!