There are 2 Policy Servers which point to the same policy store.
However, WebAgent is able to perform host registration with PS1 but not PS2.
PS2 is also showing handshake errors in smps.log
This is typically caused by Policy Servers having different Encryption Key (the clear-text password that you entered during installation).
Release : 12.8.x
It is better to reset the Encryption Key as well as the registry(which contains encrypted strings) by performing the following.
"smreg -init <clear-text-encryption-key>"
E.g. "smreg -init AbCd1234XyZ"
After this you will have to re-enter policy store and other data store information again.