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If you have several physical standby database for the same primary database then this could be expected behaviour otherwise this looks like a bug that you should report to Oracle Support who will very likely ask you to upgrade at least to 10.2.0.5 patchset or 126.96.36.199.
Thanks for your reply.
Yes, planning to upgrade to 10.2.0.5 and re-test. But this is very basic to be a bug. And I was worried that I am not missing anything.