Just follow the whole procedure, not just one step

"1. i have tried changing colour space to lab -> scopes seems to show improved highlights, however the issue is not getting resolved with this"
I also told you, after you change the color space to LAB, you need to disable channel 1.
After channel 1 is disabled you need to apply a blur of about 0.80.
And voila, blue, purple boxes are gone.
I downloaded your DNG with the sea in it, loaded it in DaVinci, went to the color tab, changed the colorspace to LAB, disabled channel 1, applied a blur of 0.80 and the blue and purple colors were gone.
This means it is aliasing, it's because your camera is lineskipping, it only reads every third line of your sensor.
Moving water and waves is high contrast detail, to get rid of artifacts, just apply a chroma blur