Thumbail Images are showing empty although the file is uploaded

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I am having a strange issue with the latest version of a self-hosted Canvas LMS Instance. When I upload any file from Account -> Files the upload process works I even see the file and its thumbnail created in the /tmp folder. The thumbnail is there with the original file on the server

But the thumbnail URL shows an empty image. When I download the image it is also an empty file.44396845-544614fc2706f86c46ee75a7ba862649.png

The request to this URL for upload is successful and returns all the preview and thumbnail URLs. Request Method: GET

What am I missing? Can someone please assist.?

I have tried everything from clearing the cache to checking the files and folder permissions and error logs. there is no hint as to what is the problem here.

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