Session ID is null. The session identified by ... is not known

The problem

Cannot connect to appium server as its always getting an error of "Failed to create session. The session identified by b6c00d36-b450-44b7-b9b5-28362434fd1f is not known".
Also tried connecting using Appium Inspector but failed.

Environment

• Appium version (or git revision) that exhibits the issue: 8.1.0
• Appium Desktop:
• Desktop OS/version used to run Appium: Mac Monterey
• Node.js version (unless using Appium.app|exe): 8.5.5
• Npm or Yarn package manager: Maven 11
• Mobile platform/version under test: Android / IOS
• Real device or emulator/simulator: Emulator
• Selenium version: 4.2.0
• testng version: 7.6.1

Details

If necessary, describe the problem you have been experiencing in more detail.

Link to Appium logs

org.openqa.selenium.SessionNotCreatedException: Could not start a new session. Possible causes are invalid address of the remote server or browser start-up failure.
Build info: version: '4.3.0', revision: 'a4995e2c09*'
System info: host: 'ComputerName', ip: '', os.name: 'Mac OS X', os.arch: 'x86_64', os.version: '12.3.1', java.version: '17.0.2'
Driver info: io.appium.java_client.AppiumDriver
Command: [null, newSession {capabilities=[{appium:deviceName=iPhone X, platformName=IOS, appium:automationName=XCUITest, appium:app=ios.app, appium:platformVersion=15.4}], desiredCapabilities=Capabilities {appium:app: ..., appium:automationName: XCUITest, appium:deviceName: iPhone X, appium:platformVersion: 15.4, platformName: IOS}}]
Capabilities {}

No source file, test, or entry point is named. Start by reproducing the Appium Java client session-creation call with the reported iOS capabilities and reviewing the server and Selenium logs. Done would require identifying a reproducible client defect and defining a corresponding fix and regression test, which the issue does not currently specify.