Hello @Vinayaka Dalawai and welcome to Microsoft Q&A.
So, you can test connection successfully, but when you trigger a pipeline run (not debug), the Factory claims it can't find the parameter definition.
There are two suspects I can think of so far. One, I notice you have not provided a Default value for the parameter in the picture. (I doubt you used "Value"). The test connection feature isn't always comprehensive.
Perhaps the pipeline isn't passing a value into the linked service to use?
The other suspect, is something is out of sync with published resources. I.E. this version of the linked service was published, but the pipeline has not be updated to supply, the parameter value, or the other way around.