even after creating new password file on primary node 1 and copying it to primary node 2 and DR nodes we see this error message

ORA-16191: Primary log shipping client not logged on standby
.. Detailed OCI error val is 1017 and errmsg is 'ORA-01017: invalid username/password; logon denied

We can see remote logins are also working fine

But when i checked

srvctl config database -d DB_NAME

i found that passowrd file is actually inside ASM and all this while i was creating and copying it from $ORACLE_HOME/dbs location in primary db node 1.

solution is to copy the primary db password file from ASM file to file system and then copy this file to primary node 2 and DR nodes. once this is done enable managed recovery on DR side and it should work.