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@a-singh09 We have identified the issue.
The problem is that for the channel creation the tx sender ("the wallet") and channel participant specified on your behalf ("the signer" / "the session key") must be different. You can read more about "wallet-signer" restrictions here. These restrictions are true for all operations, not only Authentication (we will change that in the docs).

As you are specifying the wallet and the session key to be equal in the create channel request, the Clearnode should have denied signing your request. However, this check is missing in the handler, thus you got the response and sent a create(...) tx, which emitted the Created(...) event. Still, the Created(...)

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Answer selected by nksazonov
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