Spring Cloud Stream StreamsBuilderFactoryBeanCustomizer not replacing the ERROR thread

Question

I am using Spring Cloud Stream with Kafka Stream binder. I want to alter the way deserilization exception and transient error are handled.

To handle deserilization exceptions I added

spring.cloud.stream.kafka.streams.binder.deserializationExceptionHandler= sendToDlq
spring.cloud.stream.kafka.streams.bindings.consume-in-0.consumer.dlqName= my-dlq

I saw this in my logs which is good.

default.deserialization.exception.handler = class org.springframework.kafka.streams.RecoveringDeserializationExceptionHandler

To handle Transient error, I referred to this documentation here

@Getter
@EnableConfigurationProperties({MyConfig.class})
@Slf4j
public class AppConfig {
    public static class MyStreamsUncaughtExceptionHandler implements StreamsUncaughtExceptionHandler {


        @Override
        public StreamThreadExceptionResponse handle(Throwable exception) {
            log.error("Exception occurred::", exception);
            return StreamThreadExceptionResponse.REPLACE_THREAD;
        }
    }

    @Bean
    public StreamsBuilderFactoryBeanCustomizer streamsBuilderFactoryBeanCustomizer() {
        return factoryBean -> {
            log.info("11111111111");
            factoryBean.setKafkaStreamsCustomizer(new KafkaStreamsCustomizer() {
                @Override
                public void customize(KafkaStreams kafkaStreams) {
                    log.info("222222222");

                    kafkaStreams.setUncaughtExceptionHandler(new MyStreamsUncaughtExceptionHandler());
                }
            });
        };
    }
}

The ERROR thread does not get replaced when a transient error occurs. Also, both the log statements are not executed. log.info("222222222"); & log.info("11111111111"); I am not sure what I am missing.

I saw a similar post here But it did not help my situation.