Throws Error message 1. "Failed to create non instrument connection"(when tries to launch the app)

I tried selecting and de-selecting the check box in application capabilities

The issue is unrelated to the application instrument option. It is related to creating a connection with the device. Please try to follow the following troubleshot document:
https://docs.experitest.com/display/AS/Troubleshooting+iOS+Connectivity

Even tried that, I went to help tab->open log folders -> apk folder and deleted the Paltiel folder(as suggested for Problem description: Cannot open the device on non-instrumented mode. )

Last time I faced same issue, I went and trusted my profile but now I don’t see any profile in my device to trust.

Please go to Help -> Collect Support Data. It will create a zip file with all of the logs.
Please share it so I can analyze it.

Please find the drive link to view the support data [We were unable to upload the zip here]
https://drive.google.com/file/d/0B8Dn2wKRZqHgOGx3LW53aWZQSk0/view?usp=sharing

Same issue occurring on my side too.

The issue you are facing is related to the provisioning profile you are using. You need to select / create a wildcard profile:
https://docs.experitest.com/display/public/SA/Creating+a+provision+profile