Hi, we have contact records with email address in it. However, when a user trying to login using their existing B2C credentials (created as part of some other LOB application's registration), I was expecting the Portal to automatically try and associate the user identity with the existing contact record. However, strangely the portal is showing a screen like this..

and when the user gives the email address, portal is actually creating a new contact record instead of associating with existing. Does any one observed this behaviour previously? Any thoughts?
The only difference I see in the B2C claims bag is - the email address is coming under "otherMails" node as it is a custom policy implemented by Client, where as the standard B2C claims bag it is coming under "emails" node. Could that be the difference?
Custom Policy:

OOB policy:

I have tried to include these as additional registration/login claims but no luck 😞
Thank you
-Srikanth