*   Which means in fips mode ciphers never gets offloaded to engine?
  *   All other functions (digest, RSA etc) , it first updates to fips 
function, and then engine function. Why only ciphers has this different 
behaviour?

That seems like a bug.  In FIPS mode you can only use the FIPS-validated code, 
which means that you *have* to use the OpenSSL implementation.

If you do not use the OpenSSL implementation, then you cannot claim to be FIPS 
validated, and you must get your validation for your implementation.

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