Hi @Krish,
Could you please share a screenshot of the configuration your flow?
Will the new created event always goes to deleted folder of the user office 365 calender by default?
I afraid that you have another flow would delete the event when a new event is created.
Please check if you have a flow that would delete the event when a new event is created, also please check if someone else would delete the event when a new event is created.
Best regards,
Alice