I know we get Code Level information as seen below in Purepath.
But this doesn't give the information about which exact line of code is causing the issue (slowness/failure).
Is there anyway Dynatrace could point the exact line of code from source code which is causing the issue?
It depends on the collected stacktraces. You can use method hotpost functionality to get insight into what class / method is the "hotspot" - which one is most present in the stack frames. You can't drill down to line of code, since that's not the level Dynatrace is able to get.