Env variable not being recognized

CICD: Azure devOps
Task: Azure CLI
Script Location: Inline Script
Task Version: 1
Agent: Self-hosted
Language: Go

I am facing a strange issue when I pass the env variable from Azure Pipeline.

Command (Inline Script):-

$env:ENV="FOO"

Output:-

2021-09-03T13:49:28.9213455Z 
2021-09-03T13:49:28.9214265Z c:\Agent\_work\r1\a>$env:ENV="FOO" 
**2021-09-03T13:49:28.9219788Z The filename, directory name, or volume label syntax is incorrect.**
2021-09-03T13:49:28.9298991Z ##[error]Script failed with error: Error: The process 'c:\Agent\_work\_temp\azureclitaskscript1630676963575.bat' failed with exit code 1

The same command works perfectly fine in local VM PowerShell but not sure why it doesn't from Pipeline. Any suggestions?

Note: Directory path is correct ONLY.

The script seems to be in .bat and $env:ENV=... is not a supported bat command.

>$env:ENV="FOO"

This script is PowerShell Script.

You need to specify the use of PowerShell in the Azure CLI task to run the script.

In Azure CLI task V1 , it seems that there is no option to achieve this.

I suggest that you can use the Azure CLI task version 2:

- task: AzureCLI@2
  displayName: 'Azure CLI '
  inputs:
    azureSubscription: xxx
    scriptType: ps
    scriptLocation: inlineScript
    inlineScript: '$env:ENV="FOO"'