Unsupported block type; Blocks of type "param" are not expected here

We are working on applying a policy set file with param on terraform enterprise and during to policy check step we are getting

Unsupported block type; Blocks of type “param” are not expected here.

sentinel.hcl

module "tfplan-functions" {
    source = "../common-functions/tfplan-functions/tfplan-functions.sentinel"
}

policy "S3-005" {
  source = "./s3/S3-005.sentinel"
  enforcement_level = "hard-mandatory"
  param "allowed_algorithms" {
    value = ["AES256", "aws:kms"]
  }
}
S3-005.sentinel

param allowed_algorithms default []

# Get all S3 buckets
allS3Buckets = plan.find_resources("aws_s3_bucket")

@parth7676 parameters cannot be set within the policy configuration block. Can you try changing your configuration to the following:

module "tfplan-functions" {
    source = "../common-functions/tfplan-functions/tfplan-functions.sentinel"
}

param "allowed_algorithms" {
    value = ["AES256", "aws:kms"]
}

policy "S3-005" {
  source = "./s3/S3-005.sentinel"
  enforcement_level = "hard-mandatory"
}