Error: Failed to find terraform tool in paths

When trying to deploy a single Azure Resource Group via Azure DevOps pipeline, I receive this error at the INIT stage:

Error: Failed to find terraform tool in paths

I have the remote state in Azure Blob storage. I have the local Terraform files cloned to an Azure DevOps Repository. When I manually kick off the pipeline configured with the INIT, PLAN and APPLY commands, I get the error when it gets to the INIT phase. Terraform extension is installed in DevOps. I have also verified that INIT, PLAN and APPLY work with the same code when ran locally.

Here is the simple code I’m trying to run:

terraform {
backend “azurerm” {
resource_group_name = “RG01”
storage_account_name = “***********”
container_name = “tstate”
key = “****************************”
required_providers {
azurerm = {
source = “hashicorp/azurerm”
version = “=3.0.0”

provider “azurerm” {
features {}

resource “azurerm_resource_group” “Test-RG” {
name = “RG02”
location = “West US”
tags = {
Owner = “Me”
Environment = “Testing”