The state of the session experiencing the issue, had the status = ConsoleDisconnected, whereas the correct status of the sessions should be status = RemoteConsoleDisconnected which triggers the disconnected timer and eventually logs off the machine.
We identified the impacted users were using "Tsdiscon.exe" shortcut published on their start menu to disconnect the session. And from internal repro’s in our test environment we were able to confirm that using “tsdiscon.exe” (Inbuilt process in OS for Remote Desktop Services ) transitions the session to incorrect state i.e. status = ConsoleDisconnected.