Hi @prernadas,
You are using the recipe correctly, I'm actually not reproducing this errors with your inputs (on the latest version of Prodigy)
The error you can see at the end of the traceback is spaCy expecting exclusive labels while what we are giving it is actually the opposite.
For context, even though there's just one label, it's easier to use use spaCy textcat-multilabel with just one label as it handles the negative class under the hood (some more context on it in this post) which is what the recipe does but we're still getting the incompatibility.
Which spaCy version are you running?
Looking at traceback it looks like Prodigy is < 1.12?