When trying to execute Stage Utility Network Geoprocessing tool in ArcGIS Pro, we are hitting Error:999999 and ImportXML failing.

In some testing we tried importing the Service Territory feature class from the asset package to this SDE, but it fails as well. Importing-Exporting any other layers(non-asset package) works without any issues.
What are we missing? We tried the same on a FGDB, and the UNM was created without any issues!!
Pro version = 3.3
SDE Version =

SQL Server 2022.