Asif, can you exit observe mode, download and run a new application and check if you see any event in Policy Discovery page? Are you using App Control 6.2 Product Guide? Policy Discovery page was referred to as Observation in 6.1.2 and previous MAC releases.
Hello All. The issue here was the McAfee agent 5.0.1. This agent version does not work with Application Control. You have to have 5.0.2 in order for Application Control to work properly. At least it is the case in my environment. Thanks.