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@DhadukMitesh yes the issue was that there were some custom placeholder images from backend. After removing those placeholders from admin OR putting the placeholder images in media directory worked for me.
@Eirik yes a lot of times. Also as I said it was working good 2 weeks ago but now products are not showing up with their associated children and swatches.
I have the same functionality where I need to update quote items before vendor/magento/module-checkout/Model/ShippingInformationManagement.php line: 124. Can you please tell me how can I call my class method there using around method?