So I got a reply back from Xerox support... It's not what you'll be wanting to hear..
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C230 device is working as designed. As per specification, C230 device has 256MB printer memory configuration, hence the customer print job from Mopria/iPhone is not getting printed and "[38.01] Memory Full" error message is displayed. This issue is observed due to insufficient memory storage in C230 device.
C230 device doesn't have sufficient memory to print the customer job which was submitted from Mopria/iPhone and hence the device displays the error message "[38.01] Memory Full".
Engineering observed that the same customer job submitted from Mopria/iPhone got printed fine in C235 printer which has 512 MB of printer memory configuration.
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So... I'm returning the printer as its not fit for purpose. Looking for a 512mb model replacement.