This thread is resolved. Here is a description of the problem and solution.
Problem: Languages per directories does not work
Solution: Please go to go to Setting > Permalinks and just click save: https://take.ms/GYPJg
And, if you want to use that option you have to follow the steps, requirements and procedure of that: https://wpml.org/documentation/getting-started-guide/language-setup/directory-default-language/ Please make sure you did all the steps explained there to work this option without any issue.
By following the above steps correctly the issue was resolved
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