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The world No 17 pair will now take on the world No. 23 duo of Liu Xuan Xuan and Li Wen Mei of China in the quarterfinals.
The world No. 9, Prannoy, eked out a 21-19, 22-20 win over Wang in the 49-minute opening round clash to take his overall tally to 5-3 over the Taiwanese.
The Indian challenge came to an end as the women's doubles pair of Ashwini Ponnappa and Tanisha Crasto lost to Japan's Yuki Fukushima and Sayaka Hirota 13-21, 18-21 in the quarterfinals.
Lakshya, seeded seventh, came from a game down to win 19-21, 21-8, 21-17 against Malaysia's NG Tze Yong.
Former world No. 1 Kidambi Srikanth continued to flatter to deceive as he blew an 18-15 lead and two game points to lose to Indonesia's Shesar Hiren Rhustavito 10-21, 22-24.
Defending champion Lakshya Sen and former champion Saina Nehwal suffered contrasting defeats in their respective second round matches.
Commonwealth Games bronze medallists Treesa Jolly and Gayatri Gopichand notched up a 22-20, 17-21, 21-18 win over France's world No. 29 Margot Lambert and Anne Tran in their opener.
The FIR, filed on Thursday by M Goviappa Nagaraja, alleged that the 21-year-old reigning Commonwealth Games champion, along with his brother Chirag Sen, had fudged their age to get into playing age-group tournaments since 2010.
This was only the second career match between the top two Indian shuttlers.
Lakshya, a 2021 World Championships bronze medallist, lost 17-21, 12-21 to Naraoka, a bronze medallist at the 2018 Youth Olympics.