I have scenario where we are driving INCR16 , with each transaction inserting Busy transfer.
However the Hready is toggling continues in Busy and Seq state.
Please refer the attached snap.
Is Hready behavior is correct here?
No, you cannot add wait states to the data phases of the BUSY transfers.
A BUSY transfer does not require the target to perform any data transfer, so there is no reason for the target to need to stall the AHB interface.
Something for you to ask the IP developer, why they needed wait states when not being asked to do anything.