conda: python or pip command gives error – The system cannot execute the specified program

I am trying to setup a new conda env in Anaconda3 on Windows.

C:\Users\raka>conda create --name "py_test" python=3.11

But when I run python or pip command its giving the error as shown in

C:\Users\raka>conda activate py_test

(py_test) C:\Users\raka>python -V
The system cannot execute the specified program.

(py_test) C:\Users\raka>pip -V
The system cannot execute the specified program.

I am unsure if its incorrect PATH setup or some improper configuration in conda itself.
The python and pip exe files are available in the env scripts folder.

Can anyone give me an idea what to do here?