Windows Xamarin Android emulator: Asks password, Accepts any random password and says correct password but Decryption Unsuccessful

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In Visual Studio 2017, Android emulators keep asking to enter password, accepts any random password and says password entered is correct but unfortunately your data corrupted. This is same with all latest version of Android 8.0 and 8.1 and updated emulator to 27.3.9, no resolution.

Tried all the solutions from SO(Changing environment variables, reinstalling emulators, reinstalling VS2017 and even machine OS Widows 10)

Password Screen

Decryption Unsuccessful screen

One strange observation is, emulator works fine when Google Api Checkbox is checked in device edit window (somehow emulator is slow when i check this box, i enables HAXM too)

enter image description here

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