Found the root cause, but need your help in fixing this issue for future please.
/etc/httpd/conf/httpd.conf had the new entries for the sub server incorrectly with the IP address instead of *
I replaced the IP address with * as with all other entries in this config and the websites have started working
I have been using remote.cgi process to create sub servers but was never hit by this issue in the past, is there something I should changed in my default settings?