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out (1).txt

The root cause is
&gt; could not determine az version: running az: exit status 1
“1” means authentication required. Did you run `az login` ? If you did, maybe on the wrong Azure account?

<https://stackoverflow.com/questions/60838568/terraform-azurerm-error-waiting-for-the-azure-cli-exit-status-1|This SO question has some more hints>, even though Terraform is not involved here.

yes, I've run az login and I can use az without any issues.

but thanks for the link, our setup has a self-signed certificate so I will try some of the hints from the link

Cool. I haven’t had the self-signed cert scenario yet myself so I’m curious what you find.

Sometimes .plugins directory can be monitored by anti-virus and cause problems.  There is and env var to change the location.