This issue is fixed now, basically 2 changes I had to do.

1. add allowedOrigins in the next.config file :

 experimental: {
    serverActions: {
      allowedOrigins: [
        'localhost:3000',
      ]
    }
  }

2. next.config.ts file should be present in the final docker build also.

COPY --from=builder /app/next.config.ts ./