Hello Shank & p0wertje,
The problem is been fixed.
Assumption: As I stated, I was getting some internal error in the contour pods. So, assumed it has something to do with the container images of contour.
Solution: I have upgraded my NSX-T from 3.2.0 to 3.2.1 and used the VMware Registry to pull the container images. Once it is done, the installation went through without any issues.
Thanks a lot to you guys for spending a lot of time. And it guided me to the right path.