Hi Rashmi, could you please share the snapshots of the configuration of layout and the grid layout?
Also are you able to reproduce this with the grid layout in UI Gallery? If not, then it must be an issue with your section. Do a private check-out of the OOTB grid layout from the UI gallery and try to compare that with yours and share the results.
I don't see any issues with the configuration. Can you please try the following:
1. Do you see the same behavior with the grid/table layout in UI Gallery? Do a private check-out of the OOTB grid layout from the UI gallery by clicking "View design-time configuration" and try to compare that with yours and share the results.
2. If the answer is No for the above question, the issue is with your section/layout. Did you update/override the default layout format? Please try embedding the grid layout directly in the top-most section and share the results.
3. Try pointing your application to the OOTB skin rule and see if you see the same issue.