I did update to latest version of Sonoma but the problem persists. I was on the phone with apple engineer who concluded that the update might have broken safari and will need a new safari update to fix this issue!
I can't wipe and reinstall Sonoma since we have 250 iMacs with this issue!
Im not suggesting a wipe and re-install. (Though that would work too) Just the reinstall... Download the full Sonoma 14.3 installer and install it overtop of the existing 14.3. User files will not be affected. However, Safari should be overwritten with a new copy from the 14.3 installer.