Quantum coherence and quantum correlations are studied in the strongly interacting system composed of two qubits and an oscillator with the presence of a parametric medium. To analytically solve the system, we employ the adiabatic approximation approach. It assumes each qubit's characteristic frequency is substantially lower than the oscillator frequency. To validate our approximation, a good agreement between the calculated energy spectrum of the Hamiltonian with its numerical result is presented. The time evolution of the reduced density matrices of the two-qubit and the oscillator subsystems are computed from the tripartite initial state. Starting with a factorized two-qubit initial state, the quasi-periodicity in the revival and collapse phenomenon that occurs in the two-qubit population inversion is studied. Based on the measure of relative entropy of coherence, we investigate the quantum coherence and its explicit dependence on the parametric term both for the two-qubit and the individual qubit subsystems by adopting different choices of the initial states. Similarly, the existence of quantum correlations is demonstrated by studying the geometric discord and concurrence. Besides, by numerically minimizing the Hilbert-Schmidt distance, the dynamically produced near maximally entangled states are reconstructed. The reconstructed states are observed to be nearly pure generalized Bell states. Furthermore, utilizing the oscillator density matrix, the quadrature variance and phase-space distribution of the associated Husimi Q-function are computed in the minimum entropy regime and conclude that the obtained nearly pure evolved state is a squeezed coherent state.