UPDATE : So yesterday I took the car to the same Toyota 3S dealership to give one last try because they were offering to fix the issue free of cost. I also contacted Jamil Autos, Mr.Irshad suggested me to first consult the dealership because it’s their fault so they need to do the work free of charge and if the issue gets out of their hands, then come to Jamil Autos with a history of whatever work the dealership did in my car which led to this issue.
After scanning the car, the same O2 sensor problem was coming up, they told me there were incompatibility issues with the sensor they had replaced, which was leading to misfiring in the engine and causing jerks with engine check light. However, they ordered another replacement sensor and by the end of the day they installed a new O2 sensor in my car, after which we test drove the car for 40-50km and Alhamdulillah the problem disappeared. No more check lights showing, car is driving smooth. Today also took a test drive and all issues seem resolved.
Glad that despite 4-5 days of stress and inconvenience, the car is finally back in shape and the dealership didn’t charge me anything for the sensor or replacement, they cooperated with me fully.
Very thankful to all the Pakwheelers above who contributed their advice regarding my issue, really appreciate that. And it’s a lesson learnt that never again to mess with engine tuning, etc until and unless the car is giving problems.