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Yes the Vcc is not stable. The simulation is working fine. I  used LT1242 instead of UC3842 for simulation. Its attached for your reference.

But in actual hardware, the Vcc is like a square wave. Its swinging between 16 and 10V. Is there some sort of protection mechanism occurring? Because when I remove the IC, the Vcc point keeps on linearly increasing.

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Hi KlausST, I have attached simulation file for your reference.