I had a meeting with J T Ferrara and Hoda Sharifi. J T suggested I try to invoke vivado from the command terminal. When I tried :
followed by the command
vivado did not launch and there was an error message with code 0xc00000020.
Then, when we opened the file location of Vivado shortcut icon on desktop and tried to cd to the same directory.
J T noticed that the working Vivado installation was in a different folder.
Basically all the files including vivado.bat was present at two places - one in the folder "Xyl" and the other in "Xilinx" and the working one with the license was in "Xyl".
See command window output below:
Accordingly, we changed the matlab hdlsetuppath command to :
hdlsetuptoolpath('ToolName', 'Xilinx Vivado', 'ToolPath', 'C:\Xyl\Vivado\2018.2\bin\vivado.bat');
Now the IP core was successfully generated.
Thank you for all the help!