Hello Venu Bhagavatula,
this very looks like setup issue.
I found similar behavior in the past where the problem was not with DFF
but with the location when a specific value is chosen for example for Province.
Try to check/update your values thorough the TCA and perhaps then you could save the customer record.

If you are not able to find what is wrong, I recommend to log Service Request in MOS,
because this issue needs thorough review of setup and diagnostics outputs.
Thanks, Milos