how do you think of below options...
Try importing milestones separately after importing the service targets, we can try using DMT and import the process data using BMC template tab(SLM:LoadMilestone).
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Its working fine now. In KB there was no read me file with the Hot fix. I am attaching the hotfix with read me file.
Key was - In first ARX import- We need to update the existing data based on Instance ID.