Getting error using Power Shell Script to update data sources.

Hi rajeshlohar1974 ,

The following links are the ones which has the similar requirement as yours, hope its solution can help you.

Solved: Update Datasource Credential Using Only Powershell... - Microsoft Fabric Community

PowerBI-Developer-Samples/PowerShell Scripts/EncryptGatewayCredentials.ps1 at master

# Basic Credentials
function EncryptBasicCredentials {
    param (
        [Parameter(Mandatory=$True,Position=1)]
        [String]$Username,
        [Parameter(Mandatory=$True,Position=2)] 
        [String]$PasswordAsString,
        [Parameter(Mandatory=$True,Position=3)] 
        [string]$GatewayExponent,
        [Parameter(Mandatory=$True,Position=4)] 
        [string]$GatewayModulus
    )
    
    # Create the objects to perform the necessary encryption on the credentials.  
    $gatewayKeyObj = [Microsoft.PowerBI.Api.Models.GatewayPublicKey]::new($GatewayExponent, $GatewayModulus)
    $credentialsEncryptor = [Microsoft.PowerBI.Api.Extensions.AsymmetricKeyEncryptor]::new($gatewayKeyObj)
    $basicCreds = [Microsoft.PowerBI.Api.Models.Credentials.BasicCredentials]::new($username, $PasswordAsString)

    # Construct the CredentialDetails object. The resulting "Credentials" property on this object will have been encrypted appropriately, ready for use in the request payload.
    $credentialDetails = [Microsoft.PowerBI.Api.Models.CredentialDetails]::new(
        $basicCreds, 
        [Microsoft.PowerBI.Api.Models.PrivacyLevel]::Organizational, 
        [Microsoft.PowerBI.Api.Models.EncryptedConnection]::Encrypted, 
        $credentialsEncryptor)
    
    # Construct the body for the API request.
    $body = @{
        credentialDetails = @{
            credentialType      = "Basic";
            credentials         = $credentialDetails.Credentials;
            encryptedConnection = "Encrypted";
            encryptionAlgorithm = "RSA-OAEP";
            privacyLevel        = "Organizational";
        }
    }
    $bodyJson = $body | ConvertTo-Json

    Write-Output $bodyJson
}

Best Regards