managed to resolve this issue.
The problem was my my banners. RANCID gets confused if a banners contains '>' or '#'. See below Q&A from RANCID page.
Q. Are there any characters in the banner that rancid has problems with OR
I changed the device's command prompt and now collection is failing?
A. The trickiest part about clogin (et al) is recognizing the prompt
correctly. clogin looks for '>' and '#' to figure out if it is logged
in or in enable mode. So if you have a '>' or '#' in your login banner
(or other motd), then clogin gets confused and will not be able to log
in correctly, and thus rancid will fail.