How to fix macOS app to app consent box alert issue?

Hi,

I have a MacBook M1 chipset machine; clean setup with macOS Big Sur 11.6.7. Whenever an app try to access another app, system prompts an alert box with 'Don't Allow' & 'OK' buttons.

When I click on 'OK' button or 'Don't Allow' button, nothing happens and the dialog remains there forever.

What should be the problem? How do I fix this issue?

Why system is not responding for user consent alert box actions (OK or Don't Allow)?

Thanks -Maju