I have additional feedback. I have another build pipeline which was working fine but it also started giving errors…
Recently I installed Windows SDK - Windows app development | Microsoft Developer version 10.0.26100.1 because Unreal Build process was complaining about pdbcopy.exe being missing and it guided me to install Windows 10 SDK.
After installing Windows 10 SDK 10.0.26100.1 from the link above, my builds started giving error.