Mercury retrograde it is. Below is what I did, and it worked. Still unable to figure out what was the issue.
1. Closed the system
2. Slept soundly for 8 hours
3. Woke up and did work out
4. Came back and started my laptop and logged in to the environment
5. Created PO and added item and confirmed
6. Created load from Load planning workbench
7. Used mobile device (Load item receiving and put away) to receive items at RECV location. At this stage inventory status is Available
8. Navigated to Warehouse Management/Periodic tasks/Inventory status change to change the inventory status to Blocking.
9. Voila, it worked
Thanks