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Below 2 threads helped me in understanding the approvals configuration related to work order management.
In Approval Process Definition Form I see that 'First Approver Field' = $xmApproverLoginID$ and the value that is passed to this field for initial n-1 child records has "userid+ENTERKEY" which resulted into the issues. Where as for nth record only "userid" which worked fine.
So, fixed the workflows related to these data parsing and it's working as expected now.
Good to know that the threads you mentioned helped you to solve your issue itself. This thread will be helpful to others if they come across any such issue in future.