Custom incident not getting created within an expanded sub-process

Hi Team,

I’m using 7.8.12 version of Camunda BPM. Our application is packaged and deployed as a single spring rest-easy project.
I have a process model defined as below. There is also a custom incident handler that we have created and deployed along with the application. The custom incident handler is working as expected, however there is a small issue.
When I create an incident within any system task that is outside the expanded sub-process ( as in System Task A1 in the below screenshot), the incident is created perfectly fine and we can see it in the cock-pit and camunda database as well.
However, in case of system tasks within the expanded sub-process (as in system Task B1 in the below model), the incident handler gets invoked, however the incident does not get created in the database and not visible in the cock-pit as well.
Is this a known issue and does anyone know how to fix it or are we missing any configuration here?

Thanks,
Kiran B~

Can you upload the model - the technical implementation is important to understand

Hi @Niall

I may not be able to upload the exact model since i’m bound by my company policy. Let me try to replicate the model which is similar to our actual process model and upload the same.

Thanks,
Kiran B~