Gitlab child pipeline (generated from artifacts) not considering rules conditions

Question

This jinja template values are feed by python code.

{% for host in targets %}
Test_Container_{{ host }}:
  stage: testing
  image: docker
  services:
    - docker:dind
  extends: .job_AWX_TEMPLATE_TEST_APT
  variables:
    dest_ip: {{ host }}
    srv_type: {{ srv_type }}
  artifacts:
    paths:
      - './apt*'
{#
  rules:
    - if: $srv_type == "svc_all_apt"
      when: on_success
   #} 
{% endfor %}

When I run the pipeline without rules, it works. When I specify the rule condition in child pipeline. it doesn't work. Bdw, in the variable section, can see the value svc_all_apt.

This the child pipeline content, after getting values.

Test_Container_10.10.102.253:
  stage: testing
  image: docker
  services:
    - docker:dind
  extends: .job_AWX_TEMPLATE_TEST_APT
  variables:
    dest_ip: 10.10.102.253
    srv_type: svc_all_apt
  artifacts:
    paths:
      - './apt*'
{#
  rules:
    - if: $srv_type == "svc_all_apt"
      when: on_success
   #} 

The error which I am getting, stating no downstream jobs or stages IN the above, code, condition matches, for srv_type. but fails to run the pipeline.