Thanks NJ & Urmas. Unfortunately it ended up being a defect in clarity which does not have fix at this moment, and workaround is to add date field into normal filter of list page rather than power filter.
Strangely it happens only for few cases not for all and we are one of them
CLRT-67499: which indicates if adding date type field into power filer,Clarity sometimes throws out system error in GUI as well as "ORA-01861:literal does not match format string" error in log.