Mender client unable to sync with server after device has been preauthorised

Hello,
I am using the preauthorising method to register one of my devices on the mender dashboard.
What I have done is used the mender keygen script to generate the public private key pair and used the public key to successfully pre authorise the device.
The problem comes when I am restarting the mender client service after the device is already in preauthorised state. Upon restart, I get the following error :

nfo msg="State transition: check-wait [Idle] -> inventory-update [Sync]"
nfo msg="Device unauthorized; attempting reauthorization"
rror msg="Failed to authorize with \"https://hosted.mender.io\": authentication request rejected server error message: dev auth: unauthorized"
arning msg="Reauthorization failed with error: transient error: authorization request failed"
rror msg="Failed to submit inventory data: transient error: authorization request failed"
rror msg="inventory submit failed: transient error: authorization request failed"
arning msg="Failed to refresh inventory: failed to submit inventory data: inventory submit failed: transient error: authorization request fai>
nfo msg="State transition: inventory-update [Sync] -> inventory-update-retry-wait [Sync]"
nfo msg="Handle update inventory retry state try: 0"
nfo msg="Device unauthorized; attempting reauthorization"

On the dashboard a separate pending request is generated for the same device. So I now have a preauthorised request and a pending request for the same device.

Ideally the device should have moved from the preauthorised state to accepted state but that does not happen. What could be the issue here?

@TheYoctoJester could you help me out with this?