@renukasingh without seeing it and going by your long description, this sounds like a bad display. Time to replace it and to re-evaluate. Since iFixit does not yet have a specific guide for this, use the one [https://www.nadiemellamagallina.com/en/manuales/smartphones-1/motorola-43/motorola-edge-30-1435/pantalla-completa-13092|from here] It was written in Spanish so use a browser that does the translation for you. Replacement displays are readily available at many online stores.
While you work on your phone, take lots of pictures. Once you are done with it, take those pictures and create a guide for iFixit. That will help the next person that has a device with the same issues as you do. It's easy and fun to create these guides. https://ifixit.com/Guide/new The iFixit community will appreciate this.
Repair is War on Entropy!