App clip doesn't open for AppsFlyer OneLink

Question

I have followed the app clip integration guide by AppsFlyer as given here: https://support.appsflyer.com/hc/en-us/articles/360014262358

Here is the expected flow:

1. Users without the app installed: With iOS 14 or later should be sent to the App Clip.
2. Users without the app installed: With iOS 13 or earlier, or Android, should be redirected based on the settings in OneLink (to the app store, etc).
3. Users with the app installed should be sent to the app based on the Universal Link or App Link setup in OneLink.

I am able to extract deep link data for scenarios 2 and 3. However, scenario 1 does not work, the app clip doesn't open up.

I did some additional setup as well:

1. Added this entry to app clip info.plist

    <key>AppsFlyerAppClip</key>
        <true/>

2. Added this entry to app clip entitlement:

<array>
        <string>appclips:mydomain.onelink.me</string>
    </array>

3. Added these entries to the full app entitlement:

<key>com.apple.developer.associated-domains</key>
    <array>
        <string>applinks:mydomain.onelink.me</string>
        <string>appclips:mydomain.onelink.me</string>
    </array>

4. Added this to AndroidManifest.xml

<intent-filter android:autoVerify="true">
                <action android:name="android.intent.action.VIEW" />
                <category android:name="android.intent.category.DEFAULT" />
                <category android:name="android.intent.category.BROWSABLE" />
                <data 
                    android:host="mydomain.onelink.me"
                    android:scheme="https"
                    android:pathPrefix="/zfUQ/" 
                />
            </intent-filter>

The app clip runs fine when I pass the invocation URL in Xcode or in TestFlight build. I updated the advanced app clip experience and added the App Clip Experience URL there as: https://mydomain.onelink.me

When the check the domain status status next to the build number, it shows '1 valid domain'. The AASA file correctly displays the appclips bundle ID. I don't know what's wrong, the app clip just doesn't load when I scan the QR code. Instead it takes me to the App Store. Any help would be appreciated.