The issue occurs when the Purchasing Item Picker index is not enabled or is not in a ready status.
To resolve this issue in Oracle Fusion, navigate to the Quality Management Index Management task and verify the status of the relevant item search indexes. Enable the required index for the Item Picker functionality and then perform a Rebuild Index process.
After the rebuild is completed, confirm that the index status changes to Ready. Once the index is in the Ready status, test the Item Picker search again.
I followed the Below steps in my environment, and the item search functionality is now working successfully. Therefore, it is recommended to review the index configuration and status if users are unable to search for items in Purchasing