I have been implementing MAVSDK example in HITL. Below I have linked their short videos.
My question is that why it's loosing it's local position in 2nd example and getting crashed and showing critical navigation failure message whilst odometry or qvio is working properly? I have also attached mavlink messages and code execution below.

1. Video of hitl with MAVSDK example takeoff_and_land2.py
2. Video of hitl with MAVSDK example offboard_position_ned2.py.

Mavlink messages and code execution of MAVSDK example takeoff_and_land2.py

root@apq8096:/home# python3 takeoff_and_land2.py udp://:14551
Waiting for mavsdk_server to be ready...
Connected to mavsdk_server!
Waiting for drone to connect...
Drone discovered with UUID: 5428614370902488403
Waiting for drone to have a global position estimate...
Global position estimate ok
-- Arming
[08:07:47|Debug] MAVLink: info: Armed by external command (system_impl.cpp:250)
-- Taking off
[08:07:47|Debug] MAVLink: critical: Failsafe enabled: No manual control stick input (system_impl.cpp:250)
[08:07:47|Debug] MAVLink: info: Failsafe mode activated (system_impl.cpp:250)
[08:07:47|Debug] MAVLink: info: [logger] /fs/microsd/log/2022-09-28/08_12_29.ulg (system_impl.cpp:250)
[08:07:47|Debug] MAVLink: info: Failsafe mode deactivated (system_impl.cpp:250)
[08:07:47|Debug] MAVLink: info: Using minimum takeoff altitude: 2.50 m (system_impl.cpp:250)
[08:07:48|Debug] MAVLink: info: Takeoff detected (system_impl.cpp:250)
-- Landing
[08:07:52|Debug] MAVLink: info: Landing at current position (system_impl.cpp:250)

Mavlink messages and code execution of MAVSDK example offboard_position_ned2.py.

python3 offboard_position_ned2.py udp://:14551
Using mavsdk server port 50051
Connecting to vehicle using port 14550
Waiting for mavsdk_server to be ready...
Connected to mavsdk_server!
-- Arming
[08:11:45|Debug] MAVLink: info: Armed by external command (system_impl.cpp:250)
-- Setting initial setpoint
-- Starting offboard
[08:11:45|Debug] MAVLink: critical: Failsafe enabled: No manual control stick input (system_impl.cpp:250)
-- Go 0m North, 0m East, -1m Down within local coordinate system
[08:11:45|Debug] MAVLink: info: Failsafe mode activated (system_impl.cpp:250)
[08:11:45|Debug] MAVLink: info: [logger] /fs/microsd/log/2022-09-28/08_16_54.ulg (system_impl.cpp:250)
[08:11:45|Debug] MAVLink: info: Failsafe mode deactivated (system_impl.cpp:250)
[08:11:47|Debug] MAVLink: info: Takeoff detected (system_impl.cpp:250)
-- Go 1m North, 0m East, -1m Down within local coordinate system, turn to face East
-- Go 1m North, 1m East, -1m Down within local coordinate system
[08:11:57|Debug] MAVLink: emergency: Critical navigation failure! Check sensor calibrat (system_impl.cpp:250)
[08:11:57|Warn ] Unknown StatusText severity (telemetry_impl.cpp:891)
[08:11:57|Debug] MAVLink: emergency: ion (system_impl.cpp:250)
[08:11:57|Warn ] Unknown StatusText severity (telemetry_impl.cpp:891)
-- Go 0m North, 1m East, -1m Down within local coordinate system, turn to face South
[08:12:01|Warn ] command temporarily rejected (21). (mavlink_commands.cpp:178)
[08:12:01|Debug] MAVLink: critical: Landing denied! Please land manually (system_impl.cpp:250)
Failed to land
-- Disarming
Disarming failed
root@apq8096:/home# [08:12:48|Debug] MAVLink: emergency: BARO #0 failed:  TIMEOUT! (system_impl.cpp:250)
[08:12:48|Warn ] Unknown StatusText severity (telemetry_impl.cpp:891)

Thanks!