I tried it without using the parameter file and an absolute path readable by azure and it didn't work either. So finally I used the Azure PowerShell task to deploy from DEV to STG and then with a trigger to PRD. The script reads all existing ARMTemplate in the working folder, it overrides the factoryName to the higher environment , and then deploys them in order following the dependencies from 0 to max. AzurePS_deployment_script
for ($num = 0; $num -lt $max_value; $num++ ){
Write-Host "Deploying ArmTemplate_$num.json"
$deploymentFilePath = "$scriptPath\ArmTemplate_$num.json"
#Read json template, override the previous dataFactoryName and write into the same json template file
(Get-Content $deploymentFilePath).Replace("bi-dev-datafactory", $dataFactoryName) | Set-Content $deploymentFilePath
#Deploy command
New-AzResourceGroupDeployment -Name $dataFactoryName -ResourceGroupName $resourceGroupName -TemplateFile $deploymentFilePath -verbose
}