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It works for me. Have you got an old version of the CLI? The feature is newish.

stack rename was broken a while ago <https://pulumi-community.slack.com/archives/C84L4E3N1/p1684196243244059> not sure if a) your issue is related or b) if that issue has been fixed yet

Any special characters in the new name? Maybe try quoting it in single quotes?

no special chars, If I quite, then there is still an issue with the doc though