Email Parser issue

The emails sent to a specific mail address are not getting posted to easydiscuss

We have done the following
1. Created an email address, i.e. example xyz@abc.com
2. In Setting | General | Email Parser
Enabled email parsing for xyz@abc.com with password
3. Used URL below to test IMAP connectivity
http://www.anta.net/misc/telnet-troubleshooting/imap.shtml
and it shows me 3 unread emails on xyz@abc.com
4. If I run the cron URL then I get the message
Email batch process finished.
Connecting to: xyz@abc.com

I also went to the Uncategorised category and there is a Category Email Parser. If I enter the same email xyz@abc.com & password at category level, then running cron program gives me message
Email batch process finished.
Connecting to: xyz@abc.com
Connecting to: xyz@abc.com

You will notice that now the parsing happens twice, once at site level from Setting/General/Mail Parser and then again at category level. Yet, no post is created despite there being unread emails in inbox.

I have checked & ensured that the email sender has permission to write into uncategoried category
Note- actual discussion email has been replaced by xyz@abc.com in the above example