Hi Sarath,
if you carefully read the logs, you'll see that the contest is issuing no LMSSetValue() so technically speaking there's nothing to update and that's the reason why it looks like Moodle doesn't save the tracking data as you expect.
You should describe to your content provider what is the expected behavior when the student enters for the very first time and then what should happen when she/he launches the content for the other times. From the logs, it appears that if cmi.core.lesson_status is set to failed and the cmi.core.lesson_mode is set to review by Moodle (the attempt is formally closed), the content doesn't communicate further progresses to the LMS.
HTH,
Matteo