Thanks Eskimo!
My app is a Developer-ID signed Network Extension App and so will require the sandboxing from what I understand.
Thanks for pointing me in the right direction. Will try out XPC.
LaxmanT
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*Logs 2nd part:
		 Error			 0x0									164		0		sandboxd: [com.apple.sandbox.reporting:violation] Sandbox: ***.XXXAgent(3542) deny(1) file-write-data /private/var/db/mds/system/mds.lock
Violation:			 deny(1) file-write-data /private/var/db/mds/system/mds.lock
Process:				 ***.XXXAgent [3542]
Path:						/Library/SystemExtensions/34C6B073-2035-4CA4-B055-2C2FDD1C8BCF/***.YYY.network-extension.systemextension/Contents/MacOS/***.YYY.network-extension
Identifier:			***.YYY.network-extension
Version:				 1 (1.0)
Parent Process:	launchd [1]
Responsible:		 /Library/SystemExtensions/34C6B073-2035-4CA4-B055-2C2FDD1C8BCF/***.YYY.network-extension.systemextension/Contents/MacOS/***.YYY.network-extension
OS Version:			Mac OS X 10.15.7 (19H15)
Report Version:	8
MetaData: {"action":"deny","responsible-process-user-uuid":"FFFFEEEE-DDDD-CCCC-BBBB-AAAA00000000","uid":0,"summary":"deny(1) file-write-data \/private\/var\/db\/mds\/system\/mds.lock","path":"\/private\/var\/db\/mds\/system\/mds.lock","normalized_target":["private","var","db","mds","system","mds.lock"],"pid":3542,"flags":5,"errno":1,"hardlinked":false,"platform-binary":false,"signing-id":"***.YYY.network-extension","team-id":"TEAM_ID","primary-filter-value":"\/private\/var\/db\/mds\/system\/mds.lock","process":"***.XXXAgent","build":"Mac OS X 10.15.7 (19H15)","target":"\/private\/var\/db\/mds\/system\/mds.lock","container":"\/private\/var\/root\/Library\/Containers\/***.YYY.network-extension\/Data","operation":"file-write-data","primary-filter":"path","matched-extension":false,"vnode-type":"REGULAR-FILE","platform_binary":"no","profile-in-collection":false,"process-path":"\/Library\/SystemExtensions\/34C6B073-2035-4CA4-B055-2C2FDD1C8BCF\/***.YYY.network-extension.systemextension\/Contents\/MacOS\/***.YYY.network-extension","hardware":"Mac","responsible-process-uid":0,"responsible-process-path":"\/Library\/SystemExtensions\/34C6B073-2035-4CA4-B055-2C2FDD1C8BCF\/***.YYY.network-extension.systemextension\/Contents\/MacOS\/***.YYY.network-extension","matched-user-intent-extension":false,"file-flags":0,"rdev":0,"platform-policy":false,"mount-rdev":16777221,"profile-flags":0,"apple-internal":false}
............................
Thread 3 (id: 47400):
0	 libsystem_kernel.dylib				 0x00007fff717b66a2 __open + 10
1	 Security											 0x00007fff43eddeb7 Security::MDSSession::updateDataBases() + 1303
2	 Security											 0x00007fff43f3f705 Security::MDSSession::DbOpen(char const*, cssm_net_address const*, unsigned int, Security::AccessCredentials const*, void const*, long&) + 95
3	 Security											 0x00007fff43f3f59c mds_DbOpen(long, char const*, cssm_net_address const*, unsigned int, cssm_access_credentials const*, void const*, long*) + 261
4	 Security											 0x00007fff43edd5d5 Security::MDSClient::Directory::cdsa() const + 107
5	 Security											 0x00007fff44036031 Security::MDSClient::Directory::dlGetFirst(cssm_query const&, cssm_db_record_attribute_data&, cssm_data*, cssm_db_unique_record*&) + 57
6	 Security											 0x00007fff43edd113 Security::CssmClient::Table<Security::MDSClient::Common>::startQuery(Security::CssmQuery const&, bool) + 253
7	 Security											 0x00007fff43edcc9f Security::CssmClient::Table<Security::MDSClient::Common>::fetch(Security::CssmClient::Query const&, int) + 121
8	 Security											 0x00007fff43edbaf3 CSSM_ModuleLoad + 643
9	 Security											 0x00007fff43edb3ae Security::CssmClient::ModuleImpl::activate() + 194
10	Security											 0x00007fff43edb1a8 Security::CssmClient::AttachmentImpl::activate() + 130
11	Security											 0x00007fff43edb088 Security::KeychainCore::Certificate::clHandle() + 166
12	Security											 0x00007fff440e7ef2 SecCertificateGetCLHandle_legacy + 22
13	Security											 0x00007fff4404b116 CERT_GetCertIssuerAndSN + 131
14	Security											 0x00007fff4404af1d CERT_FindCertByIssuerAndSN + 112
15	Security											 0x00007fff4404c0e4 SecCmsSignerInfoGetSigningCertificate + 80
16	Security											 0x00007fff440537cf SecCmsSignedDataVerifySignerInfo + 271
17	Security											 0x00007fff44054226 CMSDecoderCopySignerStatus + 171
18	Security											 0x00007fff44068210 Security::CodeSigning::SecStaticCode::validateDirectory() + 958
19	Security											 0x00007fff4406b393 Security::CodeSigning::SecStaticCode::validateNonResourceComponents() + 15
20	Security											 0x00007fff44058945 Security::CodeSigning::SecCode::checkValidity(unsigned int) + 219
21	Security											 0x00007fff4405f0f4 SecCodeCheckValidityWithErrors + 87
22	NetworkExtension							 0x00007fff3e2133c2 NEVerifyDesignatedRequirement + 206
23	NetworkExtension							 0x00007fff3e0c75fa +[NEExtensionPacketTunnelProviderContext extensionHasACRequirement] + 94
24	NetworkExtension							 0x00007fff3e1c1ff1 -[NEPacketTunnelProvider initWithVirtualInterfaceType:] + 37
25	***.YYY.network-extension 0x0000000102c14638 PacketTunnelProvider.init() + 488 (PacketTunnelProvider.swift:9)
26	***.YYY.network-extension 0x0000000102c1465f @objc PacketTunnelProvider.init() + 15 (<compiler-generated>:0)
27	NetworkExtension							 0x00007fff3e0c8bd2 -[NEExtensionProviderContext createWithCompletionHandler:] + 398
28	Foundation										 0x00007fff39d1e413 NSXPCCONNECTION_IS_CALLING_OUT_TO_EXPORTED_OBJECT_S1 + 10
29	Foundation										 0x00007fff39ca88de -[NSXPCConnection _decodeAndInvokeMessageWithEvent:flags:] + 2363
30	Foundation										 0x00007fff39c5fa49 message_handler + 210
31	libxpc.dylib									 0x00007fff718b922c _xpc_connection_call_event_handler + 56
32	libxpc.dylib									 0x00007fff718b813b _xpc_connection_mach_event + 934
33	libdispatch.dylib						 0x00007fff7161b6f8 _dispatch_client_callout4 + 9
Thanks for the pointers Matt. I am seeing 2 issues in the logs after I enabled SIP. I notarized the app already. Signature errors
Crash because of Sandboxing
The second part of the logs are pasted in the next post.
Please NOTE: The NE is based on open-source Wireguard protocol written in Golang.
Logs
349		0		secinitd: *.YYY.network-extension[3542]: root path for bundle "<private>" of main executable "<private>"
349		0		secinitd: (Security) SecTrustEvaluateIfNecessary
349		0		secinitd: (Security) SecTrustEvaluateIfNecessary
349		0		secinitd: *.YYY.network-extension[3542]: AppSandbox request successful
404		0		nesessionmanager: (Security) SecTrustEvaluateIfNecessary
404		0		nesessionmanager: (Security) SecTrustEvaluateIfNecessary
404		0		nesessionmanager: (NetworkExtension) [com.apple.networkextension:] Signature is valid and has the correct designated requirement
3542	 0		*.YYY.network-extension: (libsqlite3.dylib) [com.apple.libsqlite3:logging-persist] cannot open file at line 43353 of [378230ae7f]
3542	 0		*.YYY.network-extension: (libsqlite3.dylib) [com.apple.libsqlite3:logging-persist] os_unix.c:43353: (2) open(/var/db/DetachedSignatures) - No such file or directory
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:security_exception] CSSM Exception: -2147414013 CSSMERR_DL_MDS_ERROR
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:security_exception] CSSM Exception: -2147414013 CSSMERR_DL_MDS_ERROR
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:security_exception] CSSM Exception: -2147414013 CSSMERR_DL_MDS_ERROR
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:security_exception] CSSM Exception: -2147414013 CSSMERR_DL_MDS_ERROR
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:security_exception] CSSM Exception: -2147414013 CSSMERR_DL_MDS_ERROR
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:security_exception] CSSM Exception: -2147414013 CSSMERR_DL_MDS_ERROR
3542	 0		*.YYY.network-extension: (Security) SecItemCopyMatching
3542	 0		*.YYY.network-extension: (Security) SecItemCopyMatching_ios
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:xpc] Adding securityd connection to pool, total now 1
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:SecCritical] Failed to talk to secd after 4 attempts.
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:xpc] got event: Connection invalid
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:storagemgr] using system preferences
3542	 0		*.YYY.network-extension: (CoreFoundation) Loading Preferences From System CFPrefsD
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:security_exception] CSSM Exception: -2147414013 CSSMERR_DL_MDS_ERROR
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:security_exception] CSSM Exception: -2147414013 CSSMERR_DL_MDS_ERROR
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:security_exception] CSSM Exception: -2147414013 CSSMERR_DL_MDS_ERROR
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:security_exception] CSSM Exception: -2147414013 CSSMERR_DL_MDS_ERROR
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:security_exception] CSSM Exception: -2147414013 CSSMERR_DL_MDS_ERROR
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:security_exception] CSSM Exception: -2147414013 CSSMERR_DL_MDS_ERROR
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:security_exception] CSSM Exception: -2147414013 CSSMERR_DL_MDS_ERROR
3542	 0		*.YYY.network-extension: (Security) SecItemCopyMatching
3542	 0		*.YYY.network-extension: (Security) SecItemCopyMatching_ios
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:SecCritical] Failed to talk to secd after 4 attempts.
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:security_exception] CSSM Exception: -2147414013 CSSMERR_DL_MDS_ERROR
3542	 0		*.YYY.network-extension: (Security) CMSDecoderCopySignerStatus failed with kCMSSignerInvalidSignature error (3)
3542	 0		*.YYY.network-extension: (Security) [com.apple.securityd:security_exception] MacOS error: -67061
3542	 0		*.YYY.network-extension: (NetworkExtension) [com.apple.networkextension:] Signature check failed: invalid signature (code or signature have been modified)
3542	 0		*.YYY.network-extension: (libnetwork.dylib) [com.apple.network:] nw_path_evaluator_start [10272E98-45FB-4020-A6D6-CFB656C37389 <NULL> generic, indefinite]
0			0		kernel: utun_ctl_connect: creating interface utun2 (id utunid2)
0			0		kernel: ifnet_attach: Waiting for all kernel threads created for interface utun2 to get scheduled at least once.
0			0		kernel: ifnet_attach: All kernel threads created for interface utun2 have been scheduled at least once. Proceeding.
0			0		kernel: utun2: is now delegating en0 (type 0x6, family 2, sub-family 3)
114		0		configd: (libnetwork.dylib) [com.apple.network:] network_config_check_interface_settings Checking interface settings
404		0		nesessionmanager: [com.apple.networkextension:] NESMVPNSession[Primary Tunnel:UsingGoBridgeToXXXDevId8:5E99863B-1189-4C78-BE90-F27D4D1D1461:(null)]: Plugin NEVPNTunnelPlugin(*.YYY[3542]) initialized with Mach-O UUIDs (
210		0		nehelper: (Network) [com.apple.network:] -[NWPrivilegedHelper startXPCListener]_block_invoke client pid 114 does not have any known entitlement
114		0		configd: (libnetwork.dylib) [com.apple.network:] networkd_privileged_check_interface_settings_block_invoke received XPC_ERROR_CONNECTION_INVALID
404		0		nesessionmanager: [com.apple.networkextension:] NESMVPNSession[Primary Tunnel:UsingGoBridgeToXXXDevId8:5E99863B-1189-4C78-BE90-F27D4D1D1461:(null)] in state NESMVPNSessionStateStarting: plugin NEVPNTunnelPlugin(*.YYY[3542]) started with PID 3542 error (null)
3542	 0		*.YYY.network-extension: (NetworkExtension) [com.apple.networkextension:] [Extension *.YYY]: Calling startTunnelWithOptions with options 0x7fa48ee100d0
114		0		configd: [com.apple.SystemConfiguration:IPMonitor] network changed
3542	 0		*.YYY.network-extension: (NetworkExtension) [com.apple.networkextension:] [Extension *.YYY]: IPC detached
Logs:
16432	0		taskgated-helper: (ConfigurationProfiles) [com.apple.ManagedClient:ProvisioningProfiles] Checking profile: YYYNENov6_10
16432	0		taskgated-helper: (ConfigurationProfiles) [com.apple.ManagedClient:ProvisioningProfiles] allowing entitlement(s) for ***.YYY.network-extension due to provisioning profile (isUPP: 1)
1057	 0		nesessionmanager: (Security) SecTrustEvaluateIfNecessary
1057	 0		nesessionmanager: (NetworkExtension) [com.apple.networkextension:] Signature is valid and has the correct designated requirement
16463	0		***.YYY.network-extension: (libsqlite3.dylib) [com.apple.libsqlite3:logging-persist] cannot open file at line 43353 of [378230ae7f]
16463	0		***.YYY.network-extension: (libsqlite3.dylib) [com.apple.libsqlite3:logging-persist] os_unix.c:43353: (2) open(/var/db/DetachedSignatures) - No such file or directory
16463	0		***.YYY.network-extension: (Security) SecTrustEvaluateIfNecessary
16463	0		***.YYY.network-extension: (NetworkExtension) [com.apple.networkextension:] Signature check failed: code failed to satisfy specified code requirement(s)
16463	0		***.YYY.network-extension: (libnetwork.dylib) [com.apple.network:] nw_path_evaluator_start [33B7A514-5833-43B2-A4AE-1329F4B52D43 <NULL> generic, indefinite]
0			0		kernel: utun_ctl_connect: creating interface utun2 (id utunid2)
0			0		kernel: ifnet_attach: Waiting for all kernel threads created for interface utun2 to get scheduled at least once.
0			0		kernel: ifnet_attach: All kernel threads created for interface utun2 have been scheduled at least once. Proceeding.
244		0		mDNSResponder: [com.apple.mDNSResponder:Default] <private>
113		0		configd: (libnetwork.dylib) [com.apple.network:] network_config_check_interface_settings Checking interface settings
0			0		kernel: utun2: is now delegating en0 (type 0x6, family 2, sub-family 3)
252		0		nehelper: (Network) [com.apple.network:] -[NWPrivilegedHelper startXPCListener]_block_invoke client pid 113 does not have any known entitlement
1057	 0		nesessionmanager: [com.apple.networkextension:] NESMVPNSession[Primary Tunnel:UsingGoBridgeToXXXDevId6:6DCBD0E0-D11D-46DD-B202-65FD1B986444:(null)]: Plugin NEVPNTunnelPlugin(***.YYY[16463]) initialized with Mach-O UUIDs (
113		0		configd: (libnetwork.dylib) [com.apple.network:] networkd_privileged_check_interface_settings_block_invoke received XPC_ERROR_CONNECTION_INVALID
1057	 0		nesessionmanager: [com.apple.networkextension:] NESMVPNSession[Primary Tunnel:UsingGoBridgeToXXXDevId6:6DCBD0E0-D11D-46DD-B202-65FD1B986444:(null)] in state NESMVPNSessionStateStarting: plugin NEVPNTunnelPlugin(***.YYY[16463]) started with PID 16463 error (null)
16463	0		***.YYY.network-extension: (NetworkExtension) [com.apple.networkextension:] [Extension ***.YYY]: Calling startTunnelWithOptions with options 0x7f85e9d0d3e0
16463	0		***.YYY.network-extension: (NetworkExtension) [com.apple.networkextension:] [Extension ***.YYY]: IPC detached
1057	 0		nesessionmanager: [com.apple.networkextension:] NESMVPNSession[Primary Tunnel:UsingGoBridgeToXXXDevId6:6DCBD0E0-D11D-46DD-B202-65FD1B986444:(null)] in state NESMVPNSessionStateStarting: plugin NEVPNTunnelPlugin(***.YYY[16463]) did detach from IPC
1057	 0		nesessionmanager: [com.apple.networkextension:] NESMVPNSession[Primary Tunnel:UsingGoBridgeToXXXDevId6:6DCBD0E0-D11D-46DD-B202-65FD1B986444:(null)] in state NESMVPNSessionStateStarting: plugin NEVPNTunnelPlugin(***.YYY[16463]) disconnected with reason Plugin initiated
1057	 0		nesessionmanager: [com.apple.networkextension:] NESMVPNSession[Primary Tunnel:UsingGoBridgeToXXXDevId6:6DCBD0E0-D11D-46DD-B202-65FD1B986444:(null)]: Leaving state NESMVPNSessionStateStarting
1057	 0		nesessionmanager: [com.apple.networkextension:] NESMVPNSession[Primary Tunnel:UsingGoBridgeToXXXDevId6:6DCBD0E0-D11D-46DD-B202-65FD1B986444:(null)]: Entering state NESMVPNSessionStateStopping, timeout 20 seconds
1057	 0		nesessionmanager: [com.apple.networkextension:] <NESMServer: 0x7f979e504160>: Request to uninstall session: NESMVPNSession[Primary Tunnel:UsingGoBridgeToXXXDevId6:6DCBD0E0-D11D-46DD-B202-65FD1B986444:(null)]
1057	 0		nesessionmanager: [com.apple.networkextension:] NESMVPNSession[Primary Tunnel:UsingGoBridgeToXXXDevId6:6DCBD0E0-D11D-46DD-B202-65FD1B986444:(null)]: status changed to disconnecting
1057	 0		nesessionmanager: [com.apple.networkextension:] NESMVPNSession[Primary Tunnel:UsingGoBridgeToXXXDevId6:6DCBD0E0-D11D-46DD-B202-65FD1B986444:(null)]: Updated network agent (inactive, compulsory, not-user-activiated, not-kernel-activated)
1057	 0		nesessionmanager: [com.apple.networkextension:] NESMVPNSession[Primary Tunnel:UsingGoBridgeToXXXDevId6:6DCBD0E0-D11D-46DD-B202-65FD1B986444:(null)]: Leaving state NESMVPNSessionStateStopping
1057	 0		nesessionmanager: [com.apple.networkextension:] NESMVPNSession[Primary Tunnel:UsingGoBridgeToXXXDevId6:6DCBD0E0-D11D-46DD-B202-65FD1B986444:(null)]: Entering state NESMVPNSessionStateDisposing, timeout 5 seconds
0			0		kernel: ifnet_detach_final: Waiting for IO references on utun2 interface to be released
16463	0		***.YYY.network-extension: (NetworkExtension) [com.apple.networkextension:] SIOCGIFMTU failed: Device not configured
16463	0		***.YYY.network-extension: (NetworkExtension) [com.apple.networkextension:] NEVirtualInterfaceAdjustReadBufferSize: interface_get_mtu failed (6), defaulting to max mtu
16463	0		***.YYY.network-extension: (NetworkExtension) [com.apple.networkextension:] [Extension ***.YYY]: Session manager connection was invalidated
16463	0		***.YYY.network-extension: (NetworkExtension) [com.apple.networkextension:] [Extension ***.YYY]: Deallocating
Thanks Matt. I changed the bundle-id and looks like that was causing it.
Can you please post the link to a doc, that has sequence of SDK calls to talk to an existing Packet-Tunnel Extension. Thanks