This was the behaviour as the "In Use By" paramater of the disk associated with the old snapshot was showing as 'NONE" instead of a value. This can be checked by viewing the Disk Properties.
This value ideally should have the name of the VM instance attached to the disk. There will be a value present for the present master image.
Attach any existing or dummy VM instance to the disk associated with the snapshot where rollback is required. Afterwards, the value of the "In Use By" parameter should change to the name of the VM instance (as shown in the below screenshot) and the rollback will be completed as expected.

When trying to rollback the master image for a MCS provisioned catalog on GCP fails with the error below:
Action Name: MC_RollbackMachineCatalogInitialization
Exception:
StudioErrorId : ProvisioningTaskError
ErrorCategory : NotSpecified
TaskState : UnknownError
TaskStateInformation : Terminated
ErrorId : ManagedMachineGeneralException
Operation : ValidatingInputs
ErrorMessage : Exception in GetConfigurationDataForItem: Value cannot be null.
Parameter name: instanceName
Error Source : CitrixOrchestration