Thanks to the comment below! Copying the files 2 both PayerCapture folder and plug_ins folder did the trick for me.. Copying just to the one folder was not enough.

I tried so many times before that to reinstall and also use Adobe cleaner and even manually remove all files after uninstall and none of the before effort worked. I guess it really is a matter of the right files in the right place.

That fix does not work. I have reinstalled, copied files over into multiple locations. Tried on a different PC with windows 10 and 16 GB of RAM. seems like a software bug adobe needs to fix

This fixed is for me

https://helpx.adobe.com/acrobat/kb/acrobat-could-access-recognition-service.html

To resolve the problem, follow the steps below.

Go to the location:

C:\Program Files (x86)\Adobe\<Acrobat Version>\Acrobat\plug_ins\PaperCapture\iDRS15

For example, for Acrobat DC, go to:

C:\Program Files (x86)\Adobe\Acrobat DC\Acrobat\plug_ins\PaperCapture\iDRS15

Copy all the files in the folder.

Go to the following location and paste the copied files:

C:\Program Files (x86)\Adobe\<Acrobat Version>\Acrobat\plug_ins\PaperCapture

Go to the location mentioned in Step 1, and copy all the files again.

Go to the following location and paste the copied files:

C:\Program Files (x86)\Adobe\<Acrobat Version>\Acrobat\plug_ins

You can also try running OCR using the Enhanced Scans tool and then from the Edit PDF tool. (You can select the tools from the right panel in Acrobat.)

I followed the given instructions. Unfortunately, that did not help, and the above situation persists. In fact, I just did an extra step of copying the .dll files from the iDRS15 folder inside the Paper Capture folder to the plug_ins folder, and it seems that the problem is solved.