I have 2 scenarios

1. Execute test.ps1 powershell present inside azure VM – Works fine
2. Execute test.ps1 powershell directly from azure devops repository – Error

Contents of testfile.ps1

Invoke-Sqlcmd -Query "SELECT * FROM table" -ServerInstance "instance" -Database "Dbname"

Scenario 1: To execute a powershell on azure windows machine below command works perfectly

- task: PowerShellOnTargetMachines@3
  inputs:
    Machines: 'servername'
    UserName: 'username'
    UserPassword: 'password'
    InlineScript: |
      $Username = "username"
      $Password = ConvertTo-SecureString -String "password" -AsPlainText -Force
      $cred = New-Object System.Management.Automation.PSCredential ($Username, $Password)
      Invoke-Command -ComputerName servername -Credential $cred -ConfigurationName configname -ScriptBlock {D:test.ps1}
    CommunicationProtocol: 'Http'

Scenrio 2: To execute powershell directly from repository

- task: AzureCLI@2
  displayName: 'testrun'
  inputs:
    azureSubscription: 'subname'
    scriptType: 'pscore'
    scriptLocation: 'inlineScript'
    inlineScript: |
      az vm run-command invoke --command-id RunPowerShellScript --name servername-g RGname --scripts "@testfile.ps1"

For scenario 2 facing below error

Invoke-Sqlcmd : Cannot open database "DBname" requested by the login. The login failed.nLogin failed for user 'NT AUTHORITY\SYSTEM'

In Scenario 1 to avoid NTAUTHORITY authority (double-hop) issue we were using parameter ConfigurationName with stored credential in invoke-command

Invoke-Command -ComputerName servername -Credential $cred -ConfigurationName configname -ScriptBlock {D:test.ps1}

I am not sure how to use this ConfigurationName parameter in az vm run-command.
Could someone please help