Hey @riteshmpatel,
I've looked at the reference manual, and the section about booting from fuses doesn't talk about VBUS at all.
You are saying to "power" the VBUS pin (USB1/2_VBUS_3V3) in the PHY interface, but really it should be pulled to a voltage. Previous releases of the iMX series had a power requirement at this pin, but the 8MP does not.
My question is, what should the connection here be to make sure USB works on OTG mode?
Please find screenshot from your reference design, saying that "VBUS can ignored if not using OTG mode". But what if OTG _is_ required?

Moreover, when looking at "production programming pins", you are exposing both USB_DM and USB_VBUS. So VBUS must be required for OTG, right? Why else would you do this?

What are the USB VBUS pin requirements for OTG, if any? Do I need to connect it to the USB connector's VBUS? How, if the connector can be powered by the board itself via a power switch?
Thank you!