u/Hefty_Tear_5604

This is more of a solution than question. I had stuck for 2 days.
Debuggin -
Get-WinEvent -LogName Microsoft-Windows-Store/Operational -MaxEvents 50 | Format-List TimeCreated,Id,LevelDisplayName,Message

this shows the logs of store, I used it to identify the errors which system was throwing. with this I was able to pinpoint the exact issue, my store was using proxy to download but I there was no proxy configured, I even migrated from win 10 to 11 for this. and apparently the proxy setting that I set 3-4 weeks back was still stuck with downloader.

To verify the cause, I did a loopback proxy to 8000 port (even verified by using ssh socks5 proxy at port 8000) then it started working.

then I used GPT to remove any proxy setting in and out.