It would be helpful to know what operating system you are using.
I’ve seen similar errors reported on windows, and to date I can’t reproduce the error with either Command Prompt or Powershell, using either Windows Console Host or Windows Terminal.
Perhaps try the terminal in VS Code? See When I run fly launch to my project I get the following error: Error name argument or flag must be specified when not running interactively - #9 by lovelidevs