For troubleshooting the issue, captured the raw XML request sent to live endpoint in Soap UI and configured it in Workstation-->Web Service Execution step-->Raw XML tab and also configured the SSL information, headers, Soap Action and Soap Version. Then validated the live call and worked fine and got the valid response.
Started the VSE recorder in Workstation and made a call from the configured Web Service Execution step and got the valid response. Then made a call from the SoapUI to the VSE recorder and got the reported error again.
Validated the request configured in Workstation and Soap UI and see some differences in the security information. Made a call against live endpoint in Soap UI again and got the valid response. Took the XML raw request again from this call and tried in Soap UI and in Workstation to the recorder and got the valid responses.
From the above testing , need to make sure the request is valid before recording so it has valid security information.
Want to record the Soap call by making a request from the Postman which will go through the Middle Tier application which is configured to hit the VSE Recorder. Tried the call and got the reported error in the recorder. Validated the request received in the VSE recorder with the request worked in Workstation and Soap UI and saw differences in the request which caused the issue.
The request sent in Postman is valid and created Request/Response pairs and did the recording and used that VS for testing.