Packer in "waiting for the instance to be ready state" for ages

I set packer to disable_stop_instance = true as I had issues with Packer not being able to stop the instances and Sysprep which runs a finalize step stops the build instance.

This has caused my pipeline to hang at the point where packer is polling AWS for when the Instance is the stopped state. The instance is actually stopped however this keeps going with no resolution.

I am currently using packer version 1.11.0 and packer plugin 1.3.5
Do I need to update these versions or is there something else which may be causing this issue. Time is synced properly on Azure Pipeline agent server and the build server in AWS. Both synced to AWS time.
Permissions are all okay. Can someone please help me investigate?