XA transactions - timeout errors
below article has more details

https://docs.microsoft.com/en-us/archive/blogs/sqlserverfaq/sql-server-deadlocks-due-to-character-data-type-conversion-when-using-sql-server-jdbc-drivers

If sendStringParametersAsUnicode property is set to "TRUE", String parameters are sent to the server in Unicode format: http://msdn.microsoft.com/en-us/library/ms378988.aspx. That means, if this property is set to False, the data type of the parameters being passed from application will be Varchar, not nVarchar and hence there will be no implicit conversion!

And it worked. No deadlocks.