Hi ​@pragathjobs 
There maybe a difference a user install and machine install for Pro.
Solved: Install ArcGIS Pro with a 32 bit Desktop license - Esri Community

Also check notes on compatibility. Notes on FME and Esri Versions and Compatibility – FME Support Center

Also make sure you have “logged into” ArcGIS Pro. I have found that if the license has not been activated by a named user we get licensing issues.
Hopefully that helps and Good Luck!

c.

Thanks @crutledge

I tried with logging on into ArcGIS Pro and still it dint work. The pro version is 2.6 as per the document you shared its compatible with FME 2020.2. 

Hmmm. Could it be a licensing issue between Basic, Standard, Advanced for ESRI? I don’t know if FME could call a function that would require a higher level license in Pro. I imagine everything would work with a Basic license. Unsure on that.

Good Luck!

Hi ​@crutledge I already have an Advanced ArcGIS Pro License. I am confused if ArcServer has to be configured on the same machine. 

Hi ​@pragathjobs 
I think I am out of ideas on this one. Only other thing I came across that might help is FME Server not able to access ArcPro | Community

Ah the joys of troubleshooting….it only needs to work once :D

Good luck!