The issue was resolved by setting correct subscription levels
Subscription levels: A ranking system of subscriptions within a subscription group that determines the upgrade, downgrade, and crossgrade path available to subscribers. Levels make it possible to offer varying access (basic, premium) of the same service. https://help.apple.com/app-store-connect/#/dev75708c031
Topic:
App & System Services
SubTopic:
StoreKit
Tags: