Hi Swarna,
Error 500 is pretty generic, so if you could paste a piece of your stack trace could help us to help you .
Well, I've found this critical bug on Confluence https://jira.atlassian.com/browse/CONF-36771 related to JIRA issues causing code 500 and this another KB https://confluence.atlassian.com/display/JIRAKB/Create+issue+fail+with+500+page+exception+in+the+log.
Can you let us know if this work? If not, please add some logs here.
Regards,
Renato Rudnicki
Just to be sure, are you creating an Issue in JIRA from Confluence?
If so, this troubleshooting guide should help you to check what can be causing this in your Application Link.
Hope it helps!
Cheers,
Andre
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Try to turn on the oauth authentication in both JIRA and Confluence.
In JIRA go to Application Links click Edit -> Outgoing Authentication -> Oauth and click Enable.
The same steps for Incoming Authentication in JIRA.
Also you should do the same in Confluence.
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