NvChad color issues from inside GNU Screen window

Question

In iTerm2 , when I am trying to open nvim(NvChad) inside a GNU screen window, the colors are weird and all text background changes to green. I verified that the echo $TERM gives xterm-256color in a terminal and also in a Screen window.

This is how my terminal looks like

everything works fine outside the Screen. help me point out what is wrong here

I tried setting up a different value to $TERM in .screenrc by adding this line. term screen-256color but this did not help.