@NalendranA The issue might be due to the folder structure on the background node. Ensure that the folder where the flat file needs to be created exists on the background node. You can create the desired folder structure on the background node, and this should resolve the issue.
Based on the information provided it seems like there might be a configuration issue with the job scheduler when it runs on the background node. One potential solution is to ensure that the job scheduler is configured to run on only one node in the cluster. You can do this by selecting ‘Any one associated node’ in the job scheduler configuration. This way Pega Platform will choose the node on which to process the task. Additionally you might want to verify the scheduling and ensure that the job can be completed before the next run to avoid overlapping executions.
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If you can replicate the issue consistently and you do not see any errors in your logs you may want to contact the GCS team to investigate by logging a support incident via the MSP.