Getting error using Power Shell Script to update data sources.

Hi rajeshlohar1974 ,

Please check and confirm if the following info is OK:

• Make sure the service principal have admin access to the workspace where the dataset resides
• Verify the variable $gatewayId and $datasourceId are correct
• The REST API has the proper permission:Datasets - Update Datasources In Group - REST API  

After confirmed the above info is OK, please update the codes as below:

$SecuredApplicationSecret = ConvertTo-SecureString -String $clientsec1 -AsPlainText -Force
$credential = New-Object System.Management.Automation.PSCredential($applictionId, $SecuredApplicationSecret)
$sp = Connect-PowerBIServiceAccount -ServicePrincipal -Tenant $tenantId -Credential $credential

$workspace = Get-PowerBIWorkspace -Name $workspacename
$dataset1 = Get-PowerBIDataset -WorkspaceId $workspace.Id | Where-Object {$_.name -eq $reportName}

$workspaceId = $workspace.Id
$datasetId = $dataset1.Id  # Corrected variable name

Write-Host "Workspace ID: $workspaceId"
Write-Host "Dataset ID: $datasetId"

$datasources = Get-PowerBIDatasource -WorkspaceId $workspaceId -DatasetId $datasetId
Write-Host "Data Sources: $($datasources | ConvertTo-Json)"

foreach($datasource in $datasources) {
    $gatewayId = $datasource.gatewayId
    $datasourceId = $datasource.datasourceId
    $datasourePatchUrl = "gateways/$gatewayId/datasources/$datasourceId"

    Write-Host "Patching credentials for Data Source ID: $datasourceId"

    # HTTP request body to patch datasource credentials
    $patchBody = @{
        "credentialDetails" = @{
            "credentials" = @{
                "credentialData" = @(
                    @{ "name" = "username"; "value" = "$sqlUserName" },
                    @{ "name" = "password"; "value" = "$sqlUserPassword" }
                )
            }
            "credentialType" = "Basic"
            "encryptedConnection" = "Encrypted"
            "encryptionAlgorithm" = "RSA-OAEP"
            "privacyLevel" = "None"
        }
    }

    # Convert body contents to JSON
    $patchBodyJson = ConvertTo-Json -InputObject $patchBody -Depth 6 -Compress
    Write-Host "Patch Body: $patchBodyJson"

    # Execute PATCH operation to set datasource credentials
    try {
        Invoke-PowerBIRestMethod -Method Patch -Url $datasourePatchUrl -Body $patchBodyJson
        Write-Host "Successfully updated credentials for Data Source ID: $datasourceId"
    } catch {
        Write-Host "Error updating credentials: $_"
    }
}

Best Regards