I found the solution,
by removing the old binary, and installing wrangler using npm -g install [email protected]
and not npm i @cloudflare/wrangler -g
It was confusing for me, didn’t know wrangler2 is using wrangler package from NPM. This misunderstanding was because google search landed me to Install / Update · Cloudflare Workers docs
Yes, there was a small notice regarding new release on wrangler but i never thought i would miss this (and still use @cloudflare/wrangler instead of wrangler package)
This might be helpful for anyone who faces similar problem