Thumbail Images are showing empty although the file is uploaded

[Adeel-Raza]

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.

The request to this URL for upload is successful and returns all the preview and thumbnail URLs.
https://canvas_url.com/api/v1/files/32/create_success?on_duplicate=rename&uuid=jTSaPRWRposXUcLMFmcY7... 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.