Deployed Processes using environment extensions fail with the below errors.
Error 1: Unexpected error occurred while initializing a step.; Caused by: Unable to process overrides; Caused by: INVALID_CHARACTER_ERR: An invalid or illegal XML character is specified
(OR)
Error 2: Caused by: java.lang.NullPointerException
These errors could indicate that there is an environment extension value with a special character or the extension value is blank.
Test the extensions in Build mode by using the "Test extensions" feature with the same values provided in the environment extensions to validate it easily.
On the environment extensions page, make sure you have supplied the input values(either to use the default connection value/extension value) for all the extended parameters at the process level.
If you are still facing the issue, check the runtime logs during the time of the failure to see if there is additional information regarding the error.