Finding Culprit Blocking Sql
Now, I know that the query came form DB server 1 with ProgramName Microsoft SQL Server. Now I am confused whether the program Microsoft SQL Server is indicating the link server query or application query using ORM.

The host name &quot;DB server 1&quot; along with the &quot;Microsoft SQL Server&quot; program name indicates a linked server query, not a query executed directly from the application.

From the DBA perspective what else I can do to get the real issue?

As @Learning_DBAdmin suggested in comments, examine the active queries running on DB server 1 during the blocking episode. One or more should show the query with the linked server along with the originating application host and program name.
The real issue is likely the need for query/index tuning to optimize the remote query. You may need indexes on the join/where clause columns. The explict conversion on Tbl1029.MyColumn3 will preclude using an index on the column efficiently (if one exists). The resultant full scans can lead to blocking.