xbee pro s2c encryption+sleep mode broken

here is the issue

  1. It works fine when the Encryption is disabled and sleep mode is enabled. Module wakes up and send data. pc s2c module receives the data
  2. It works fine when the Encryption is enabled and sleep mode is disabled. Module wakes up and send data. pc s2c module receives the data
  3. It DOES NOT work when both Encryption and sleep mode are enabled.
    In the entire test
  4. We used same sensor board which was sending data.
  5. Modules were in API mode
  6. I connected two led. One on sleep mode pin ( pin 9) and one on sleep status(pin 13). they were coming on/off as they should.
  7. On the same sensor board i tested the S3B module. EY and sleep were enabled and it worked without any issue.

I am quite certain there is a firmware bug in s2c module.
any help will be appreciated.