Thanks for responding.
Did changes mentioned above. When checked PID 1 with "PS" command - busybox as init manager.
With these changes - imx8mp can boot and enters into root long-in page but does not launch Weston Wayland terminal and chromium browser as these packages were added part of <image>.bb file.
Even tried with INIT_MANAGER = "sysvinit" and VIRTUAL-RUNTIME_init_manager = "sysvinit" still the same behaviour.
Can you please assist am i missing anthing?