Thank you all for the detailed step wise explanation and process.
I have done the same setup and taken care of the above points.
For the Point 3 to have the business transaction ( REL) and have the field SET checked is done in release status. This works fine for the Network header but not for Network activities
I have already done the setup in Object types for activating network activities for status profile.
And that is where the surprise factor is why the system is not behaving for network activities as designed
The user status is stuck at CRTD status even the system status is in REL.
Any further thoughts where I can check the config and correct
Regards
Rutvij