ConnectionFailureException when user running the command does not match the ConnectAsUserName

$Credential = Get-Credential -Message "Enter your login name" 
Import-Module -Name SqlServer
$ServerInstance = "SERVERNAME"
$Server = New-Object Microsoft.SqlServer.Management.Smo.Server $ServerInstance
$Server.ConnectionContext.LoginSecure = $true
$Server.ConnectionContext.ConnectAsUser = $true
$Server.ConnectionContext.ConnectAsUserName = $Credential.GetNetworkCredential().UserName
$Server.ConnectionContext.ConnectAsUserPassword = $Credential.GetNetworkCredential().Password
try {$Server.ConnectionContext.Connect()} catch {$_.Exception | Format-List -Force}

Throws the following error, when the user running the command does not match the ConnectAsUserName

ErrorRecord                 : Exception calling "Connect" with "0" argument(s): "Failed to connect to server SERVERNAME."
WasThrownFromThrowStatement : False
TargetSite                  : Void CheckActionPreference(System.Management.Automation.Language.FunctionContext, System.Exception)
Message                     : Exception calling "Connect" with "0" argument(s): "Failed to connect to server SERVERNAME."
Data                        : {[System.Management.Automation.Interpreter.InterpretedFrameInfo, System.Management.Automation.Interpreter.InterpretedFrameInfo[]]}
InnerException              : Microsoft.SqlServer.Management.Common.ConnectionFailureException: Failed to connect to server SERVERNAME.
                               ---> System.IO.FileNotFoundException: Could not load file or assembly 'System.Diagnostics.StackTrace, Version=6.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a'. The
                              system cannot find the file specified.
                              File name: 'System.Diagnostics.StackTrace, Version=6.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a'
                                 at Microsoft.Data.SqlClient.SqlConfigurableRetryLogicManager.get_ConnectionProvider()
                                 at Microsoft.Data.SqlClient.SqlConnection.get_RetryLogicProvider()
                                 at Microsoft.Data.SqlClient.SqlConnection.get_IsProviderRetriable()
                                 at Microsoft.Data.SqlClient.SqlConnection.Open(SqlConnectionOverrides overrides)
                                 at Microsoft.Data.SqlClient.SqlConnection.Open()
                                 at Microsoft.SqlServer.Management.Common.ConnectionManager.InternalConnectImpl()
                                 at System.Threading.ExecutionContext.RunInternal(ExecutionContext executionContext, ContextCallback callback, Object state)
                              --- End of stack trace from previous location ---
                                 at System.Threading.ExecutionContext.RunInternal(ExecutionContext executionContext, ContextCallback callback, Object state)
                                 at System.Security.Principal.WindowsIdentity.RunImpersonatedInternal(SafeAccessTokenHandle token, Action action)
                                 at Microsoft.SqlServer.Management.Common.ConnectionManager.InternalConnect()
                                 at Microsoft.SqlServer.Management.Common.ConnectionManager.Connect()
                                 --- End of inner exception stack trace ---
                                 at Microsoft.SqlServer.Management.Common.ConnectionManager.Connect()
                                 at CallSite.Target(Closure, CallSite, Object)
HelpLink                    :
Source                      : System.Management.Automation
HResult                     : -2146233087
StackTrace                  :    at System.Management.Automation.ExceptionHandlingOps.CheckActionPreference(FunctionContext funcContext, Exception exception)
                                 at System.Management.Automation.Interpreter.ActionCallInstruction`2.Run(InterpretedFrame frame)
                                 at System.Management.Automation.Interpreter.EnterTryCatchFinallyInstruction.Run(InterpretedFrame frame)
                                 at System.Management.Automation.Interpreter.EnterTryCatchFinallyInstruction.Run(InterpretedFrame frame)

Running Windows 11,

Name                           Version          Source                           ProviderName
----                           -------          ------                           ------------
SqlServer                      22.3.0           https://www.powershellgallery.c… PowerShellGet

Start with the provided PowerShell reproduction and the stack trace's ConnectionManager.InternalConnect and SqlConnection.Open paths. Check how the SqlServer 22.3.0 dependency set is loaded when ConnectAsUser differs from the caller, especially the missing System.Diagnostics.StackTrace assembly. Done means the same script connects successfully or the underlying dependency issue is clearly identified.