Sai Praneeth's roommate Kidambi Srikanth has also been withdrawn from the Thailand Open and is in strict self-quarantine.
PV Sindhu will participate in the Yonex Thailand Open, followed by the Toyota Thailand Open, and the BWF World Tour Finals.
Parupalli Kashyap, a former world no.6, insisted that he too has an outside chance of qualifying for the Tokyo Games but he has no way to pursue it as he can't train at the camp.
Saina Nehwal has been allowed by the Sports Authority of India to resume training at the Pullela Gopichand Academy from August 7 following the Telangana government's approval on August 1.
World champion PV Sindhu, along with B Sai Praneeth and N Sikki Reddy, hit the courts for training on Friday under strict safety protocols at the SAI Pullela Gopichand Badminton Academy in Hyderabad
Saina Nehwal questioned the rationale behind scheduling 22 event in just five months in a revised BWF calendar, saying the "stupid" planning will increase the injury risk.
PV Sindhu will open her campaign against Hong Kong's Cheung Ngan Yi and is expected to face seventh seed Michelle Li of Canada in the quarterfinals.
Saina Nehwal and Kidmabi Srikanth are currently ranked 18th and 15th respectively, while being placed 22nd and 26th in the 'Race to Tokyo' rankings.
Kidambi Srikanth beat Dmitriy Panarin 21-10, 21-7 while Lakshya beat Artur Niyazov 21-13, 21-8.
The Indian men's Badminton team will look to win medals to secure crucial ranking points ahead of the Olympics.
Kidambi Srikanth crashed out in the first round of Malaysia Masters on Wednesday.
PV Sindhu won the World Championships in Basel last year, but made early exits in the rest of the season, including failing to defend her World Tour Finals crown in December.
China Open: Parupalli Kashyap lost to Denmark's Viktor Axelson in straight games in the second round.
PV Sindhu will begin her campaign against Germany's Yvonne Li, while Saina Nehwal will take on China's Cai Yan Yan in the first round.
Denmark Open: Saina Nehwal and Kidambi Srikanth both were knocked out in the first round after they lost in straight games to their respective opponents.
PV Sindhu will start her campaign against Michelle Li, while Kidambi Srikanth will face World No. 2 Chou Tien Chen of Chinese Taipei in the first round.
Sai Praneeth lost 21-16, 6-21, 16-21 to World No.9 Anthony Sinisuka Ginting in the quarterfinals of the China Open.
Apart from the boxers, the committee has also included 22-year-old women's 10m air pistol shooter Yashaswini Singh Deswal and Badminton star Sai Praneeth in the TOPS scheme.