diff --git a/eng/common/TestResources/New-TestResources.ps1 b/eng/common/TestResources/New-TestResources.ps1
index 29be770c5ea..ae38aefa36d 100644
--- a/eng/common/TestResources/New-TestResources.ps1
+++ b/eng/common/TestResources/New-TestResources.ps1
@@ -196,14 +196,14 @@ function NewServicePrincipalWrapper([string]$subscription, [string]$resourceGrou
             # Submitting a password credential object without specifying a password will result in one being generated on the server side.
             $password = New-Object -TypeName "Microsoft.Azure.PowerShell.Cmdlets.Resources.MSGraph.Models.ApiV10.MicrosoftGraphPasswordCredential"
             $password.DisplayName = "Password for $displayName"
-            $credential = Retry { New-AzADSpCredential -PasswordCredentials $password -ServicePrincipalObject $servicePrincipal }
+            $credential = Retry { New-AzADSpCredential -PasswordCredentials $password -ServicePrincipalObject $servicePrincipal -ErrorAction 'Stop' }
             $spPassword = ConvertTo-SecureString $credential.SecretText -AsPlainText -Force
             $appId = $servicePrincipal.AppId
         } else {
             Write-Verbose "Creating service principal credential via MS Graph API"
             # In 5.2.0 the password credential issue was fixed (see https://github.com/Azure/azure-powershell/pull/16690) but the
             # parameter set was changed making the above call fail due to a missing ServicePrincipalId parameter.
-            $credential = Retry { $servicePrincipal | New-AzADSpCredential }
+            $credential = Retry { $servicePrincipal | New-AzADSpCredential -ErrorAction 'Stop' }
             $spPassword = ConvertTo-SecureString $credential.SecretText -AsPlainText -Force
             $appId = $servicePrincipal.AppId
         }