I created new List and a new worfklow. Workflow had only log activity and it worked on Item creation.
Then I started copying activities from my problematic workflow and in between it had same issue. I couldn’t get exactly which activity was had problem but it worked after several attemps of copy paste 🙂
Another point to be noted, most of the time when I was publish the workflow. The check “Automatically run workflow on item creation” gets unchecked.