Which IIQ version are you inquiring about?
8.5
8.5
I think that is the default behavior based on OOTB Identity Request Provision workflow(called by LCM Provisioning workflow). The Build Manual Action Approvals rule is used to create workitem. You can review this rule to check that the owner is calculated using the resolveAppRequestOwner method present in Approval Library. If you want to change this behavior you will need to customize these Rules. Please make sure you rename the OOTB rules with new names so that any future updates do not overwrite your customizations.
Hello Saipriya. @SanjeevIAM is correct that this behavior comes from the OOTB manual-action approval logic.
For new accounts, IIQ creates a single Create manual-action item, so it resolves to the application owner. You could clone Build Manual Action Approvals, split and group the entitlements by their ManagedAttribute owners, keep the application owner as fallback, and update Identity Request Provision to use the custom rule.