so i connected with some people from the UIpath team yesterday and got this issue resolved. Thank you to them for taking the time.
there was some strangeness in how my dialog box was being rendered so in such case it is advisable narrow down to select the target as something you want to interact with so you can be 100% sure its present on screen. I’m putting this in my words above.
What finally worked was choosing the target as the click button and the message text as anchor in the final dialog box.
Previously I had selected the whole dialog box as the target but because of how it was rendered UiPath was misunderstanding if it was rendered on the screen or not.
I had tried all options (visible, interactive, etc) but nothing worked.
So if you’re facing this problem, consider changing the target and anchor.
Thank you Bogdan Stefan and @loginerror