Acquire Connection and Strange behavior when using Execute Package Task

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I've a Master package where in I'm calling several packages using Execute package task.

Both child and master packages don't have any configuration and are connecting OLEDB (SQL Server) using hardcoded SQL authentication connections in the connection managers.

Also the packages have encrypt sensitive with the password.

Strange behavior seen: 1. Child Packages run successfully when run from BIDS but fail when run from master packages with Acquire Connection failure

"The AcquireConnection method call to the connection manager failed with error code 0xC0202009"

Can someone help with the resolution for this?

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