I referred this post to install packages in chroot when unable to do it with yay command
looks like instead of this command sudo mount /dev/nvme0n1p2 /mnt/boot/efi, I ran sudo mount /dev/nvme0n1p1 /mnt/boot/efi while doing the chroot.
I again tried with the correct command and installed as referred in this post “Yay command Chroot - #2 by stormschip” and rebooted now. Still the boot is stuck at the same line