@gpramod.dath I believe that KS version 8.5.5 does not support appium 2.0 directly. You have a couple of options. You could downgrade to appium 1.XX (one problem with this is xcode 14 won’t work with appium 1.XX, there was a fix that only went in to appium 2.0), use remote execution to utilize appium 2.0 with that version of KS, or you can install the proof of concept version of katalon studio that supports appium 2.0. Here are links to a couple of those options:
https://docs.katalon.com/docs/create-tests/manage-projects/project-settings/desired-capabilities/remote-execution-for-mobile-testing-in-katalon-studio#ariaid-title1
https://docs.katalon.com/docs/general-information/proof-of-concept/execute-mobile-tests-with-appium-2.x-in-katalon-studio-poc
I have been using remote execution with appium 2.0 for a while and it has been working for me.