In this section you wrote

“If that user has the app-owner permission, then the user will not get the issue. But the error prompting for other permission sets. How can I resolve this?”

    App-Owner has access to mostly all the Objects. App-Owner do not supposed to get any access errors.

My recommendations are:

1- Trying to refresh “Report Cache” in IE IFS by access “Refresh Server Cache” selecting the report option by checking the box and then click on refresh.

2- Try to access the access the permission set of the end user with the issue and then go to IFS functionality and search for the report to see if has access to.

There is no doubt that the issue pertains to permissions.

I would use the Debug console to track the call when the error occurs, and use that to identify what is missing.  It might be the report itself or it might be one of the System Privileges.

Here’s a prior Community article that may help with the analysis… it isn’t directly the same but it guides at a high level on the process of using the Debug for this type of work: 

HTH,

Nick

Thank you all for your valuable input. I found a similar issue here and apparently, it was fixed in a later version (22R1 SU4 )