Calls failing on iPhone 13 when phone is removed from ear

So, for the past month or so, I have been having this weird issue with my iPhone 13 where the call gets failed anytime I try to end the call by removing the phone from my ear and bringing it forward. As it happens too frequently, I tried to recreate this issue and found out that anytime phone is using the proximity sensor to turn the display ‘on’ from ‘off’ state, after being removed from the ear and face adjacent position to normal position, the call failed error pops up.

This happens when I bring the phone forward for putting the call on speakerphone or even when I try to add a call or do anything that requires the proximity wake up functionality.

I’m on iOS 18.3 currently but having this issue since iOS 18.1

[Re-Titled by Moderator]