Hi Alok,
It is intended that you run the commands using Azure PowerShell in VS Code Terminal on your local PC. Based on your screenshot, you are attempting to run the commands using Azure Cloud Shell in VS Code Terminal, which is not the same thing.
NOTE: As detailed in the Introduction unit, you need to have Azure PowerShell installed on your local PC among other prerequisites. Please download and install Azure PowerShell if you haven't already.
In VS Code Terminal, click the Launch Profile... (plus icon) button and switch to PowerShell, as shown:
Once you have PowerShell prompt, enter the commands as described in the Unit 3 exercise.
Please click Accept Answer and upvote if the above was helpful.
Thanks.
-TP