I checked with the developers and they believe that your code should work fine as is....
Is your baud rate set to 115200?
Baud rate is 921600 which has been working fine except flow control.
And that baud rate is below 1.5M this chip is known to be able to support.
The developers confirmed that there shouldn't be an issue as the PUART was tested with/out HW flow control up to 1.5M.
I suggested using 115200 as a debug step. They said your code looks good.
Thanks for confirmation with developers. Really appreciated.
I will try different things including baud rate 115210 and let you updated.
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I want to let you know that PUART RTS flow control works now.
Verified with the scope RTS is correctly asserted after receiving data over PUART.
The baud rate is 921600. It appears that default watermark level is 4 bytes.
The reason why it didn't work previously seems like because RTS pin was included
in BLE_PROFILE_GPIO_CFG which was passed in to bleapp_set_cfg().
After removing RTS pin from BLE_PROFILE_GPIO_CFG table, it started working.