@Samya,
You have an timeout error, meaning that your action took longer than expected to finish and hence the timeout. I suggest you to set the processor on DEBUG and see what gets written in your logs.
It could be that what you have set within your ADLSCredentialsControllerService (where you defined your identity) does not have all the required roles to perform this action 🙂
It could also be that you are trying to maybe create a folder with some strange characters and ADLS does not allow you to do that.
Nevertheless, to further debug your situation, set your log level for the processor on DEBUG and see what it writes as output in nifi-app.logs. You can start your analysis from there.