After following the steps and discussions for the same problem raised by the other users and system restart it got fixed. So not sure about the exact steps

It was permission related issue on the app.

Thanks Eskimo for reply and suggestions. Can you help me to understand Why the application icon is shown with blocked mark in finder? This blocked mark on application icon is removed when the application permission changes.

Yes, the daemon uses restricted entitlement and hence needs a provisioning profile. My issue is on step 4: User can navigate to the directory which contains daemon app. Here, in finder, App logo is shown with blocked symbol on it which basically means unsupported. When the user tries to launch it then it throws error as app unsupported.

Yes, I get this message when I try to launch the app through finder double click. My main concern is that Finder shows this app as unsupported i.e. the logo of the app comes with blocked mark on it.

Thanks for reply. No, its not GUI app but its and kind of System Extension bundled as application. It does not display UI. This app is loaded as a launch deamon using a plist. The app is launched in root context.