Getting 02 in response code while firing DE command to HSM

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I am trying to create an offset of an encrypted pin using DE command in HSM (Thales). I am using Python code to do this. After firing the command I am getting 02 in the response. The error codes manual describes it as

Key inappropriate length for algorithm

I can also see the offset generated in the output. But why this error code is coming in the response. Can I use the offset coming in the output?

Thanks for help in advance.

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