Please try below PowerShell.
$SiteUrl = "https://tenant.sharepoint.com\sites\test"
$SourceFilePath ="C:\test.docx"
$DestinationPath = "Shared Documents" #Site Relative Path of the Library
Try {
#Connect to PNP Online
Connect-PnPOnline -Url $SiteUrl -Interactive
#powershell pnp to upload file to sharepoint online
Add-PnPFile -Path $SourceFilePath -Folder $DestinationPath
}
catch {
write-host "Error: $($_.Exception.Message)" -foregroundcolor Red
}
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