Hi Prasanna,
What is the antivirus running on your LoadRunner machine?
If you disable it will you face the same issue?
Will you face the same issue if you run VuGen as an administrator?
One additional suggestion if antivirus or a hooking software is causing the issue, you can try using Proxy recording. Please check the chapter How to Record a Script via a Proxy in LoadRunner 12 user guide and the following post: http://h30499.www3.hp.com/t5/HP-LoadRunner-and-Performance/Using-proxy-recording-for-local-AUTs-in-LoadRunner-12-00/ba-p/6416362
If neither of this suggestions work, please open a case with HP software support.
Kind regards,
Vesela